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The revised FY11-12 gross domestic product (GDP) growth is likely to fall to 6% on account of a slump in manufacturing led by weak demand and difficulty in accessing funds, according to a report.
First revised estimate of GDP for FY12 was 6.2%, based on a 2.7% growth in the industrial sector. The second revised estimate for FY12 is scheduled to be released on January 31.
"We expect overall industrial sector growth may have logged in a lower growth rate in the final analysis. This may finally drag the overall GDP growth to 6%, sub-6% may not be ruled out, from the earlier provisional figure of 6.2%, unless there is a significant upward revision in other components which looks unlikely," SBI said in its internal report Ecowrap.
The report said the uncertain global and domestic environment dragged investment down by 8.7% in FY12.
Tight monetary policy resulted in escalating lending rates discouraging industrial activity and interest paid by firms rose 37.1% in FY12, significantly higher than 20.1% rise in interest payment in FY11 and a mere 6.8% rise in FY'10.
