Govt sees economic growth at 8% in FY12

The country's economic growth is likely to fall to around 8% in 2011-12, from 8.5% in the previous fiscal, the Parliament was informed today.

"Growth is expected to decelerate... To around 8% in 2011-12...," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.

He was replying to a question whether the Reserve Bank, in its annual credit policy for 2011-12, pegged the economic growth at 8% this fiscal.

"RBI has stated that the growth momentum remained relatively firm during 2010-11, signs of moderation emerged in the latter half of the year, particularly with respect to capital goods and investment activity," Meena said.

The country's Gross Domestic Product (GDP) had expanded by 8.5% in 2010-11.

In its pre-Budget survey, the government had projected economic growth to be 9% this fiscal. However, in recent months there has been marked slowdown in industrial activity on account of high interest rates.

Industrial production expanded by 5.9% in April, 5.6% in May and 8.8% in June.

Experts had also said that the 6.6% industrial growth registered last fiscal is unlikely to be matched this year.

Earlier this month, the Prime Minister's Economic Advisory Council had projected growth to be 8.2% in 2011-12.