CMIE raises GDP growth to 6.7% for this fiscal

CMIE raises GDP growth to 6.7% for this fiscal
PTI
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First Published: Mon, Dec 14 2009. 06 56 PM IST
Updated: Mon, Dec 14 2009. 06 56 PM IST
Mumbai: The Centre for Monitoring Indian Economy has revised its GDP growth forecast for the current fiscal to 6.7% from 6.2% announced last month.
The upward revision comes on the back of lower-than- expected damage to smaller crops due to drought and floods and a robust industrial growth in September, The Centre for Monitoring Indian Economy (CMIE) said in its latest report.
“Real GDP growth for 2009-10 is revised upwards to 6.7% from a 6.2% growth projected in the previous month (November),” the report said.
Further, the industrial growth is expected to continue to remain healthy in the remaining months of the fiscal, CMIE said.
The real GDP in the first-half of the fiscal was better-than-expected at 7% against 5.8% registered during second half of the last financial year.
In another good news, the report said the performance of the economy in the first-half of the current fiscal shows the effects of the global liquidity crisis have lessened.
The export sector, among the worst hit sectors by the crisis, too is showing signs of recovery, with the rate of decline slowing to 13.8% in September 2009 and to 6.6% in October from a 20-30% fall during the peak in April-August period, CMIE said.
The CMIE forecasts industrial production to grow by 7.8% and services sector by 8.6%.
However, the agriculture and allied sectors growth is likely to shrink by 1.4%, it said.
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First Published: Mon, Dec 14 2009. 06 56 PM IST