India lowers growth forecast to 5.7 percent

New Delhi, Dec 17 (IANS) The Indian government Monday said its economic growth was likely to remain in the range of 5.7 to 5.9 percent, sharply lower from the budgetary estimate of 7.6 percent.

In the mid-year economic review tabled in parliament, the finance ministry, however, said it was on track to meet the fiscal deficit target of 5.3 percent.

India's economic growth has slumped in the recent quarters due to the lingering uncertainties in the global economy and domestic policy inaction. The country's gross domestic product (GDP) has expanded by just 5.4 percent in the first half of 2012-13.

In the report, the finance ministry said the economic growth was likely to improve in the second half the current financial year and the overall growth would remain between 5.7 and 5.9 percent.

"It should be possible for the economy to improve the overall growth rate of GDP to around 5.7 percent to 5.9 percent for the year 2012-13," the report said.


Get stories like this on the Yahoo app and discover more every day.
Download it now.