There's more bad news for the Indian economy. The National Council for Applied Economic Research on Monday cut GDP growth forecast to 5.6% for 2012-13 from 5.9% projected earlier due to weaker expansion in all key sectors. The forecast comes after the government revised the growth rates to 6.2% for 2011-12 from 6.5% estimated earlier.
While the industry is expected to grow 3.3% in 2012-13 compared to 3.5% estimated earlier, agriculture growth forecast was pared to 3.3% from 3.5% and services growth to 7.6% from 8%, NCAER said in its quarterly review report.
The Delhi-based think-tank expects a mild recovery of 6.2% in 2013-14 with improvement in agriculture and industrial output. Last week, the Reserve Bank of India lowered growth estimates to 5.5% for 2012-13.