GDP growth to be 8.9% in FY08: EAC

The Prime Minister's Economic Advisory Council (EAC) today came out with its 'Review of the economy 2007-08' and said it estimated the country's gross domestic product (GDP) growth will be 8.9% in the financial year 2007-08 as against the earlier forecast of 9%.

It also held that GDP growth in 2008-09 would slow down to 8.5%.

For the current financial year, the EAC revised the agricultural growth target to 3.6% as against the previous forecast of 2.5%. However, the growth projections for industrial sector too has been revised downward to 9.7% from the 10.6% projected earlier.

The EAC held that services sector would grow at 10.3% as against the earlier forecast of 10.4%.