CMIE pegs GDP growth for the fiscal lower at 5.7 per cent

Our Banking Bureau

Mumbai, Dec 10: The Centre for Monitoring Indian Economy (CMIE) has revised its estimate of country’s economic growth to 5.7 per cent this fiscal as against the earlier projection of six per cent.

The revision follows the slower than expected growth in industry during the first half, sharp fall in exports and concerns following a fall in the capital goods index, CMIE said in a statement. CMIE has recently revised its estimate of index of industrial production to 3.5 per cent against its earlier projection of 4.5 per cent.

CMIE said the industrial sector was expected to recover in the second half of 2001-02, after having recorded a growth of only 2.3 per cent in the first half while the consumer goods segment was expected to perform well.

The index for consumer durables grew by 16 per cent in the second quarter of this fiscal as against the 6.5-7 per cent growth recorded in the preceding two quarters.

The other sectoral forecasts by CMIE remained broadly unchanged with the agricultural sector remaining unchanged at 6.5 per cent.

The forecast for growth in the services sector was also being maintained at 6.6 per cent. Of this, trade, transport and communication was projected to grow by seven per cent, real estate, finance and insurance at 6.5 per cent and other services by six per cent, it added.