Govt lowers GDP growth forecast to 7.5%

Citing global and domestic reasons, the government today lowered the GDP forecast for the current fiscal to 7.5 % from 9 %, but exuded confidence of a revival in the next year.

"The analysis of several data series and simple macro-econometric modeling lead us to forecast GDP growth of 7.5 % (plus/minus 0.25 %) during 2011-12," the government said in the Mid-Year Analysis 2011-12 tabled in Parliament.
Compounding with domestic factors like decline in industrial production, the global situation has led to a clear slowdown in the growth rate in the first half of 2011-12 to 7.3 % from 8.6 % year-on-year, it said.