PM panel cuts the growth forcast to 7.1%

The Prime Minister’s Economic Advisory Council (EAC) has cut the current fiscal growth forecast to 7.1 per cent from previous projection of 7.7 per cent. The cut in the projection is said to be due to the on going global turmoil.

In 2007-08, the nation had witnessed a growth of 9 per cent. This fiscal the growth would be lower then previous year. The government has been taking various major steps including stimulus packages to check the impact of global financial crisis.

The global economy has been facing the worse since June last year. The global financial crisis has been affecting all most sectors of the nation, where as the export sectors is one badly hit. The fall in the demand of various products and services has adversely affected the export sectors and the economy.

The inflation was one of the core issues of the economy in the current fiscal. Considering the global financial crisis and inflation in India the EAC has cut its projection from 7.7 per cent to 7.1 per cent.