JOIN USIn the wake of declining industrial performance, poor capital flows and compounding economic worries in the western world, the National Council of Applied Economic Research Tuesday revised its economic growth forecast for 2011-12 downward to 7 per cent, while projected inflation upward to 9 per cent in the same period.
It, however, revised the industrial output growth to 7.8 per cent from an earlier 5.9 per cent amid a recent moderation in India’s Industrial production.
India’s industrial growth improved marginally to 5.9 per cent in November 2011 from the 4.7 per cent decline in October 2011. This was aided by an easing of the adverse base effect and various temporary factors that had dampened production levels in October.
The NCAER, however, lowered its projection for the growth for services sector by 0.3 percentage points to 8.9 per cent. The quartwerly review of the economy brought out by the NCAER also cautioned the government against its rising fiscal deficit in the current saying, it needed to take strong measures to curb it close to the budgeted target of 4.6 per cent tomaintain its credibility.