India forecasts faster economic growth, warns of fiscal challenge

The government estimates GDP will grow 5% this fiscal year, which ends on March 31. That would be the slowest growth since the global financial crisis of 2008-09

India's government forecasts economic growth will pick up to 6.0% to 6.5% in the fiscal year beginning April 1, but warned it may have to miss its deficit target to revive growth.

India is facing its worst economic slowdown in a decade.

Growth fell to 4.5% in the July-September quarter. Consequently, the budget deficit may need to exceed this year's target, 3.3% of gross domestic product, the government said in an economic survey released on Friday.

Finance Minister Nirmala Sitharaman will present the budget for the coming fiscal year on Saturday.

"Going forward, considering the urgent priority of the government to revive growth in