The National Council of Applied Economic Research (NCAER) on Friday said the country's growth rate is likely to be in the range of 4.8-5.3 per cent in the current fiscal year (FY14), lower than its earlier forecast of 5.9 per cent, due to slowdown in key manufacturing and services sectors.
"GDP growth rate projected at between 4.8-5.3 per cent," the think tanks said in its Mid-Year Review of the Economy 2013-14.
"The industrial sector continues to under-perform due to sluggish growth of manufacturing and contraction of output in the mining and quarrying sector...The growth of services sector is lower as compared to last year resulting in downward revision of estimates to 6.6 per cent."
Last month, IMF had lowered its projection of India's growth rate to 3.75 per cent in 2013, from 5.7 per cent earlier.
The IMF's GDP at factor cost forecast, which is a part of its World Economic Outlook, pegged India's growth at about 5 per cent in 2014.
Asian Development Bank (ADB) had also lowered India's growth projection for 2013-14 to 4.7 per cent from 6 per cent earlier saying the recent rupee depreciation and capital outflows could adversely impact the country's economy.
Meanwhile, Finance Minister P Chidambaram on Friday exuded confidence that the economy will pick up in the second half of the current fiscal year to achieve a growth rate of 5-5.5 per cent. (Read more)
GDP growth fell to a decade-low of 5 per cent in 2012-13 as investments slowed and factory output decelerated. Growth rate was 4.4 per cent in the quarter ended June.
The fiscal deficit is estimated at 5.1 per cent of GDP, and current account deficit (CAD) is estimated to remain at 4.5 per cent of GDP, NCAER said.
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