GDP growth to slow down by one per cent to 7.8pc: NCAER

The monthly report of NCAER indicates that GDP growth rate will be slow slow down by one per cent to 7.8 per. Besides, increase in central government subsidies by Rs 20,000 crore and reduction in the world output by one per cent to four per cent in 2008 would have bearing on the growth, NCAER said in its latest monthly report. The Current Account Deficit is projected to grow to 6.5 per cent of GDP, it said.

Indian economy witnessed a growth of 9.1 per cent during 2007-08. It was expected to achieve the dual digit GDP rate. The decline in growth is lower in all the main sectors of the economy, it said, adding, industry is expected to grow at 8.4 per cent, against the previous forecast of 9.4 per cent while services would expand by 9.1 per cent, compared to 10.5 per cent. However, the growth in the agriculture sector has been kept unchanged at 2.5 per cent. On inflation, the NCAER report said the Wholesale Price-based inflation is likely to be at 7.9 per cent during the fiscal, against the earlier projection of 5.2 per cent.