Amid grim global situation and high domestic interest rates, Prime Minister Manmohan Singh on Friday said country’s economic growth is likely to slow down to 7-7.5 per cent this fiscal from 8.4 per cent last year.
“…growth in the current fiscal year is likely to be lower, between 7 and 7.5 per cent, in a large measure due to the continuing uncertainty in the global economic environment,” he said at the Chief Secretaries conference in New Delhi.
India’s economy had expanded by 8.4 per cent in 2010-11 financial year.
“This (8.4 per cent growth) was a creditable performance when seen in the background of a crisis-ridden world economy.
“But, monetary tightening together with a difficult global economic environment, particularly the lingering Euro Zone crisis, has impacted the rate of growth adversely,” Singh added.