Government lowers FY14 growth forecast to 4.9 per cent

The economy is expected to grow 4.9 per cent in 2013/14, marginally lower than the finance ministry's estimate of a 5 per cent growth, dragged down by a contraction in the manufacturing sector, a government statement said on Friday.

India's farm output is expected to grow 4.6 per cent in the fiscal year to March 31, against 1.4 per cent growth a year ago, while the manufacturing sector is seen contracting 0.2 per cent compared with 1.1 per cent growth in 2012/13, the statement released by the statistics ministry showed.

India's economic growth slowed to a decade low 4.5 per cent in 2012/13 from 6.7 per cent in the previous year, revised data from the statistics ministry showed last week.

Last year, Finance Minister P. Chidambaram had projected an estimated GDP growth of 6.1-6.7 per cent in 2013/14 in his annual budget, but lately lowered the estimates to around 5 per cent.

(Reuters)