Crisil Revises GDP Growth Forecast To 8.1pc

Rating agency Crisil has changed its GDP growth forecast to 8.1 per cent for 2008-09 from the earlier forecast of 8.5 per cent in view of the worsening inflation, interest rate and global growth outlook. Growth for sectors such as industry and services has also been adapted downwards to 8 per cent and 9.8 per cent respectively. As the current inflationary expectations are way beyond the Reserve Bank of India''s comfort zone of 4-5-5 per cent, a cut in key interest rates has been ruled out. Also, the recent reducing of global growth projections has led to revising growth projections downwards for 2008-09. The report said that inflation will remain high in the next few months due to high commodity prices globally.