CMIE scales down GDP growth at 8.9%

In view of the downward revision in agricultural and industrial growth forecast, the Centre for Monitoring Indian Economy (CMIE) said it has scaled down its GDP growth estimates to 8.9 per cent from 9.1 per cent for this fiscal (FY 08).

However, the economy is expected to continue on its healthy growth trajectory in FY 09, clocking a 9.1 per cent growth in GDP, CMIE said in its monthly review here. The Central Statistical Organisation (CSO), has estimated GDP to grow by 8.7 per cent in FY 08 on top of the 9.6 per cent growth closed in FY 07, which was the second highest annual GDP growth achieved by the country since Independence. The upward revision by the government in the base figures (2006-07) of rice and sugarcane has pulled down the agriculture GDP growth forecast for FY 08 to 3.1 per cent from 3.9 per cent earlier.

CMIE has also revised its industrial growth forecast downwards to 9.1 per cent from 9.4 per cent, owing to the downward revision in production forecast for food products, copper and cement.

“We expect services to grow by 10.7 per cent with hotels, transport and communication as well as financial and real estate registering 11-12 per cent growth,” CMIE said.