July-Sept growth to be lower than 7.7%: Montek

India's economy will grow at a lesser pace in July-September period this fiscal than 7.7% achieved in April-June quarter, the Planning Commission said today.

"(growth in) the second quarter will not be better than the first quarter," Planning panel Deputy Chairman Montek Singh Ahlulwalia said addressing a panel discussion at ICC event here.

"In the first half (April-June), the economic growth would be below 8%," he added.

"In the Planning Commission we have done our calculation. It could be around 8% (for the entire 2011-12 fiscal). There is more downside risk than upside," he added.

The Plan panel is eyeing 9% annual average growth rate in the 12th Plan (2012-17).

 It had already scaled down annual average growth rate during the current Plan (2007-12) to 8.2% from the originally targetted 9%.

In a recent full Plan panel meeting chaired by Prime Minister Manmohan Singh, the panel has estimated the economic growth in the current fiscal at 8-8.3%.

Commenting on price rise, Ahluwalia said, "Growth is not bad but inflation is worse."

"Monetary policy operates with fairly substantial lag. The lag effect is between 6 to 9 months..Going by that logic last 2 interest rate hikes have had no impact on the ground."

Inflation was 9.22% in July, much above the Reserve Bank's comfort level of 5-6%.