India's economy will grow at a lesser pace in July-September period this fiscal than 7.7% achieved in April-June quarter, the Planning Commission said today.
"(growth in) the second quarter will not be better than the first quarter," Planning panel Deputy Chairman Montek Singh Ahlulwalia said addressing a panel discussion at ICC event here.
"In the first half (April-June), the economic growth would be below 8%," he added.
"In the Planning Commission we have done our calculation. It could be around 8% (for the entire 2011-12 fiscal). There is more downside risk than upside," he added.
The Plan panel is eyeing 9% annual average growth rate in the 12th Plan (2012-17).
It had already scaled down annual average growth rate during the current Plan (2007-12) to 8.2% from the originally targetted 9%.
In a recent full Plan panel meeting chaired by Prime Minister Manmohan Singh, the panel has estimated the economic growth in the current fiscal at 8-8.3%.
Commenting on price rise, Ahluwalia said, "Growth is not bad but inflation is worse."
"Monetary policy operates with fairly substantial lag. The lag effect is between 6 to 9 months..Going by that logic last 2 interest rate hikes have had no impact on the ground."
Inflation was 9.22% in July, much above the Reserve Bank's comfort level of 5-6%.
