Click to play videoMumbai: Planning Commission Deputy Chairperson Montek Singh Ahluwalia says the global financial crisis would slow down India's Gross Domestic Product (GDP) growth to just 6.5 per cent in the second half of this fiscal.
"India will see 6.5 per cent growth in second half of this fiscal. Growth has been targeted at seven per cent in financial year 2010 as the global economy will revive in the second half of 2010 on the back of various stimulus measures," Montek said in Mumbai on Saturday.
"Probably in the second half of the current fiscal year 08-09, the growth rate was 6.5 per cent or something like that. Many people think that the economy will get better in the second of the next fiscal year. so then maybe we can hope for atleast seven," he added.
Montek's statement indicates the government is scaling down its growth projections. The government had earlier said that the Indian economy will grow by 7.1 per cent this year, despite the global economic slowdown,
The GDP growth last year was nine per cent and the slowdown is largely due to a fall in industrial and agricultural sectors.
Agriculture grew by 2.6 per cent this year, compared to 4.9 per cent in the previous year while industrial growth nearly dropped to half slipping to 4.8 per cent from last year's 8.1 per cent.
Growth rate in the service sector have also fallen.
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