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Crisil revises down GDP growthrances

Ratings agency Crisil lowered its growth forecast for the Indian economy in 2011-12 to 7%, from the earlier estimate of 7.6%, due to global slowdown and weak domestic investment climate.

The ratings firm in a report said that "Crisil Research has lowered India's Gross Domestic Product growth forecast for 2011-12 to 7.0% from its October estimate of 7.6%.”

It added that "The forecast has been scaled down, in view of deterioration in the global economic outlook led by the Euro zone recession, a weaker than anticipated domestic investment climate and limited fiscal space to stimulate the economy.”

Crisil said that economic growth in the second half (October-March) of the current fiscal is likely to slip to 6.7%, from 7.3% in the first six months.

It said that "This will restrict the overall GDP growth for 2011-12 at 7%. This would be the second-lowest growth in the past nine years after 6.8% in 2008-09, during the peak of global financial crisis.”

The country's GDP growth slipped to 6.9% in the second quarter, the lowest in over two years.

The economic growth in 2010-11 stood at 8.5%.

Growth in eight core infrastructure industries dipped to 0.1% in October, the lowest in five years.

RBI has already revised its growth projection for the Indian economy to 7.6%, from 8% earlier.