The country's economic growth is likely to slip to eight per cent this fiscal from the estimated 8.6 per cent in 2010-11, due to slowdown in agriculture and services, according to a survey by FICCI.
In its ‘Economic Outlook Survey' released today, FICCI also said that inflationary pressure in the economy will persist during the first half of this fiscal, before moderating to around seven per cent by the year-end.
“The economy is expected to grow by eight per cent this fiscal as against 8.6 per cent in 2010-11,” it said.
“Inflation may further accelerate over the first half of the fiscal year because of the expected increase in diesel, LPG and kerosene prices and supply side constraints faced by commodities such as vegetables, fruits, pulses, milk and eggs,” it added.
FICCI, however, said that in the second half of this fiscal, inflationary pressure is likely to moderate and the numbers may to fall to around seven per cent by March 2012.
The industry body's projections are almost in line with those of the Reserve Bank of India.
In its monetary policy for 2011-12, released earlier this month, RBI projected the economy to grow by eight per cent this fiscal, lower than the Government's original forecast of nine per cent.
It had also said that rising global commodity prices, particularly of crude, would keep the headline inflation high in the near future. The apex bank had projected inflation to average nine per cent during the first half of this fiscal before moderating to around six per cent by year-end.
The GDP growth during the first two quarters of 2010-11 was 8.9 per cent, while it grew by 8.2 per cent in the third quarter.
The numbers for the fourth quarter of last fiscal as well as for the whole of 2010-11 are going to be released on Tuesday.