CMIE pegs GDP growth down to 6%

The Centre for Monitoring Indian Economy (CMIE) has lowered its growth forecast to 6 per cent, from 6.2 per cent projected earlier, for this fiscal, owing to the delay in recovery in industrial sector and the fall in mining, manufacturing and construction segments.

“We have reduced our GDP forecast to 6 per cent,” CMIE said. The real GDP growth in the second quarter will be the same as in first quarter, 5.5 per cent, while the third quarter is expected to show some improvement at 5.9 per cent.

“The recovery is thus pushed forward closer to the end of the year. We expect the last quarter to post a 7 per cent growth. As a result of this delay in the recovery, the overall growth is expected to decline to 6 per cent,” CMIE said.

The downward revision comes weeks after government pegged the GDP growth at 5.5-6 per cent. The economic growth fell to a nine-year low of 6.5 per cent last fiscal and in the first quarter of the current fiscal, it expanded by only 5.5 per cent.

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