The Reserve Bank of India (RBI) today said there was a downside risk to 8% growth projection for the current fiscal due to global concerns and slowing domestic demand.
The growth momentum is weakening in advanced economies amid heightened concerns that recovery may take longer than expected earlier, RBI said, adding that this combined with slowdown in domestic demand suggests that growth projection made in July review is on the downside.
The RBI in July had projected GDP growth for the current fiscal at 8%. India had clocked an economic growth of 8.5% in the previous fiscal.
In the first quarter of 2011-12, the economy grew at 7.7%, slowest in 18-months.
The rate of growth in industrial output in July also slowed to a 21-month low of 3.3%.
