India downgrades growth forecasts

Added: (Mon Mar 03 2008)

Pressbox (Press Release) - Slower growth figures and an inflation warning have been published by India's government in its pre-Budget Economic Survey.

The global credit crisis and threat of recession have prompted a more modest forecast of 8.7 per cent growth for 2008, against the 9.6 per cent that has been previously predicted.

This will hinder India's aim of an average nine per cent growth over the five years up to 2012, as detailed in the Eleventh Plan.

Finance minister Palaniappan Chidambaram said keeping inflation in check would be a key challenge for the coming year.

'If you wish me to sum up in one phrase the outlook for 2008 to 2009 then I would say optimism, but with caution as the watchword," he said.

"There are a number of things going in favour of India."

One subject outlined in the survey was the possibility of implementing a "green revolution" in the farming sector, which is one of the most important industries in the country.

Further analysis of the Indian economy could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.

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