Rating agency Moody's today revised upwards India's economic growth forecast to 6.4 per cent for the current fiscal on the back of "stronger-than-expected" first quarter growth rate of the country.
"The stronger-than-expected start of the fiscal year has prompted ... To revise India's annual growth forecast from 6.2 per cent to 6.4 per cent," Moody's Economy.Com, a research arm of Moody's, said in a release.
The country managed a reasonable economic growth of 6.1 per cent during the first quarter of the current fiscal despite the global financial crisis.
However, it said that despite a generally positive outlook, downside risks are still looming.
"Farm output is likely to show a noticeable decline in September and December periods, heavily weighing on overall GDP growth," it said.
The robust momentum in manufacturing during recent months may be unsustainable in the near term, it said. "Policymakers certainly cannot rule out chances of a dip in the September quarter before activity continues with its mild upward trend."
Moody's also said that India's medium-term prospects are rosy. The annual GDP growth is likely to accelerate to 7.2 per cent in the next fiscal and further accelerate until reaching a pace of about 9 per cent in 2012-2013.