RBI lowers growth forecast to 5.7% for FY10

India’s banking regulator Reserve Bank of India (RBI) has lowered its growth forecast for the current fiscal to 5.7%, down from 6% forecast of expansion that the bank had made three months ago.

The results of professional forecasters’ survey conducted by the the apex bank in March 2009 that suggested moderation in economic activity for FY09. The median forecast for GDP growth in the survey came down to 6.6% and 5.7% respectively for the last and current fiscals.

Further, the sectoral growth rate forecast for the agriculture sector has been revised downwards from 3% to 1.6% and for industry, from 4.9% to 4.1%. Services sector, however, bucked the trend and the forecast for the sector was revised upwards from 9% in the last survey to 9.3% in the current survey.