CMIE trims FY09 GDP growth forecast

The Indian economy would continue to grow at a strong pace of over 9% in FY09, the Centre for Monitoring Indian Economy (CMIE) said in its monthly report on Monday.

“We had predicted a growth of 9.1% in our first forecast in February, which was revised up to 9.5% in June. We now believe that the economy would grow by 9.4% in FY09,” CMIE said.

This marginal change is because of a downward revision in the growth estimate of the industrial sector, the economic think tank said. CMIE had predicted a growth of 11.4% in the industrial segment of the Indian economy.

However, following a slowdown in the industrial output of a few industries, the industrial sector would grow by 11.1% and not 11.4% as predicted earlier, the CMIE said.

The Reserve Bank of India (RBI) had predicted that the real GDP would grow by 8-8.5% in FY09. But, central bank trimmed this down to about 8% in its first-quarter review of the monetary policy.

The Economic Advisory Council of the Prime Minister (EAC), on the other hand, expects the Indian economy to grow by 7.7%.

Source : India Info Line