Standard and Poors has lowered the growth forecast for India to 5.5 per cent for this fiscal,from 6.5 per cent projected earlier,citing volatile global economic situation. According to S&P,lack of monsoon rains has affected India,for which agriculture still forms a substantial part of the economy.
However,brushing aside the S&Ps forecast,the Prime Ministers Economic Advisory Council said that growth is expected to pick up in the second half of this fiscal and reach 6.7 per cent for entire 2012-13.
I think it is a wrong assessment. I do not know the basis for the growth rate estimated by the rating agencies. But we stand by the growth rate that we have forecast that is 6.7 per cent,PMEAC chairman C Rangarajan said. There were enough indications to this effect,he said.