Assocham lowers FY11 GDP growth estimate to 8.7%

Industry body Assocham today said it has lowered its projections for the country's economy to 8.7% for the financial year 2010-11.

Earlier, it had projected the GDP growth to be 9% for the current fiscal.

"Assocham has revised its November GDP projections from 9% to further southwards at 8.7%, as double digit inflation coupled with tight monetary policy is pinching the industrial units due to increased interest and input costs," the chamber said in statement.

Economic growth may moderate in view of rising prices of fuel and manufactured goods, an Assocham survey of 421 CEOs said.

"The Indian economy has the potential to grow faster than 9%. However, to sustain such levels, there are no easy options and significant deepening of reform initiatives is needed," it said.

The government has projected that the country's economy would grow by 8.6% in the current fiscal.