Rating agency Crisil has lowered India’s GDP growth forecast to 7.6 per cent from the earlier estimated 7.7 - 8 per cent.
"The forecast has been scaled down in view of the deteriorating global economic scenario and the grim investment climate in India on account of the policy environment,” said a release from Crisil.
“While we had anticipated the impact of rising interest rates and slowing government expenditure, the deceleration in advanced countries has been sharper than expected. This, in conjunction with the weak investment climate, is impacting India’s GDP growth prospects. We now project the Indian economy to grow at 7.6 per cent in 2011-12,” said Ms Roopa Kudva, Managing Director and Chief Executive Officer, Crisil Ltd.
The report has projected a slowdown in industrial activity. The industry is projected to grow at a slower rate of 6.5 per cent in 2011-12 compared to the previous forecast of 7.3 per cent.
The forecast for WPI inflation has been increased to 9.1 per cent from 8- 8.5 per cent.