PM expects GDP growth to decline to 7-7.5% next fiscal

Muscat: The global financial crisis is expected to hurt the Indian economy more than previously anticipated, with Prime Minister Manmohan Singh on Sunday projecting gross domestic product (GDP) growth to decline to 7-7.5% next fiscal.
Although the government and the Reserve Bank of India (RBI) are battling contraction in credit growth, Singh said the fundamentals of the economy were strong and banks were safe, and promised accelerated efforts to prop up growth.
“Due to the current international economic and financial situation, our growth rate may come down somewhat next year. However, we still hope to achieve a growth rate of 7-7.5% next year,” he said, addressing the Indian expat community here.
RBI had last month said Inida’s $1.2 trillion (Rs57.36 trillion) economy may grow at 7.5% this fiscal as opposed to 9% in 2007-08. The rate in 2008-09 would be the weakest since 2005.

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