GDP Growth Forecast Down To 8.9%

The Prime Minister''s Economic Advisory Council has scaled down its growth projection for 2007-08 to 8.9 per cent from 9 per cent earlier on account of slow expansion in manufacturing and energy generation. Our current assessment for GDP growth rate in 2007-08 is marginally lower than our previous estimate in July 2007. The main difference stems from lower than expected expansion in manufacturing output and lower growth in the output of energy utilities, said a review of the economy for 2007-08, released by Council Chairman C Ranagarajan. A better than expected growth rate in the farm sector has partially offset the lower expansion rate in manufacturing and energy. The agriculture sector is likely to grow by 3.6 per cent as against the earlier estimate of 2.5 per cent. Manufacturing sector growth is likely to slow down to 9.8 per cent in the current fiscal against 11.3 per cent projected by the Council in its July outlook. The sector had grown by 12.3 per cent last year.