FADING HOPES | ||
Revised growth forecast for 2000-2001 | ||
| Before | After | |
| RBI | 6.5-7 | 6-6.5 |
| CMIE | 7 | 5.8 |
| NCAER | 7 | 6.4 |
| GREEN TO ORANGE |
| April-June GDP growth rate was a poor 5.8 per cent compared to the first quarter of 1999-2000 |
| Industry grew only at 5.4 per cent in July compared to 8 per cent in March 2000. Capital goods sector is stagnant and services slowing down. |
| Inflation in first quarter of 2000 has touched 6.4 per cent, about double than the first quarter of 1999 |
| Costlier oil imports may widen the trade gap. Already at $3 billion in the first quarter compare to $2.3 billion in the first quarter of the previous year. |
| Deficient monsoon in three big states dampens hopes of a good farm sector growth. |
