NCAER Raises GDP Growth Forecast For The Year To 8.9 Pc

New Delhi: National Council of Applied Economic Research (NCAER) has revised its estimation of gross domestic product (GDP) growth for the current fiscal to 8.9 per cent from its August estimates of 8.5 per cent, goaded by speedier growth of agriculture and services. In its latest quarterly review, released here on Oct 31, the Council contends that in the case of agriculture, the factors that have led to higher growth rate are exogenous - better price conditions for the year; while in the case of services, the momentum of growth in telecommunications and financial services is likely to continue.

Stating that the overall rate of inflation is slower at 4.5 per cent for the year as a whole, the Council said this reduces the growth in current tax revenues. The current account balance is projected to be lower mainly because of exchange rate appreciation. With the sharp rise in capital inflows, particularly short-term capital flows as portfolio funds are often viewed the exchange rate of the Rupee has appreciated by about 10 per cent year-on-year (YOY) in the first five months of the current fiscal year.