CMIE revises GDP growth to 5.8% from 6.6%

India's economy is likely to grow at 5.8 per cent in the current fiscal as against an earlier projection of 6.6 per cent, a leading economic think-tank said in its latest report.     

The lowering of projection was on account of a poor monsoon, particularly in the month of June and July, Centre for Monitoring Indian Economy (CMIE) said in its report.     

According to CMIE, from the June 2009 quarter to March 2010 quarter, growth in real GDP is projected to improve from 4.7 per cent to 7.1 per cent.     

"This implies a 5.8 per cent growth in GDP in 2009-10, much lower than our earlier expectations of a 6.6 per cent increase and 6.7 per cent growth recorded in 2008-09," the CMIE said.     

The revision is entirely because of the failure of the monsoon in June and July this year, the report said.However, despite the economy clocking a 5.8 per cent growth, India is still among the handful of countries in the world with a respectable growth rate, the CMIE said.

"The growth rates remain respectable in spite of two consecutive shocks in the space of less than 10 months (global liquidity crisis in September 2008 and the failure of monsoon). It is a reflection of the resilience of the Indian economy and a tribute to its strong fundmamentals," the CMIE report said.