S&P sees GDP growth slowing to 8.4% in FY08

Standard and Poor's is expecting economic growth and inflation to moderate in FY08.

"Our projection for the year 2007-08 is 7.90-8.40% - a slight slowdown from the current year's performance due to the impact of interest rate increases and liquidity constraints," Subir Gokarn, chief economist of S&P's Indian subsidiary Crisil, said.

"We would see a decline in the inflation rate from the current 6% to 5-5.5%," Gokarn added.

S&P, in January,  had raised India's sovereign credit rating to investment grade, citing strong economic prospects and external balance sheet, deep capital market and an improving fiscal situation.