GDP Growth Forecast Revised Downwards to 7.5%

The Government of India has revised the projected growth rate for Gross Domestic Product (GDP) for the year 2011-12 to 7.5% from the previous projection of 9% keeping the global and domestic economic factors in mind.

India's GDP Growth Rate 2011-12

Mr.Pranab Mukherjee presented the “Mid-Year Analysis 2011-12” to the Parliament on Friday. The report states: “The analysis of several data series and simple micro-econometric modelling lead us to forecast GDP growth of 7.5% (plus/minus 0.25 per cent) during 2011-12.

The report further said: “We expect some revival next year but the outlook remains mixed. If Europe slides into proper recession, with all the attendant financial contagion that will no doubt affect other nations, the entire world economy will slow down and we could also be impacted.” The report however hopes that if Europe and US remain stable, it should be possible for India, given the strong economic fundamentals, India may revert to the targeted 9% growth rate.

Mr.Mukherjee said that the overall inflation of 9.73% (October 2011) would possibly taper down to 7% by March 2012.

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