JP Morgan may raise India GDP forecast

With the advance estimates of full-year GDP showing 9.2 per cent rise, JP Morgan is likely raise its 2007-08 GDP growth forecast to around 8 per cent from the current 7.5 per cent. Due to the impact of monetary tightening, slower export growth, capacity constraints in some high-growth service industries like hotels and air travel, the growth is still moderate. Besides, the boost to industrial production from higher commercial vehicle sales in 2006-07, which was largely due to regulatory changes and the introduction of new emission norms, won8217;t be repeated in 2007-08, says JP Morgan.