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Summary The government expects manufacturing output to grow 3.9 percent this fiscal year.
Indias government on Tuesday revised down its economic growth forecast for the current fiscal year to below 7.0 percent, reflecting weakness in Asias third-largest economy.The Indian economy is seen expanding by 6.9 percent in the year to March, below the 7.25-7.75 percent range given by the government in its December forecast, new data from the statistics ministry showed.Indian companies, particularly in the manufacturing sector, have suffered from 13 interest rate rises since March 2010 designed to tame inflation that was running at near double-digits.The government expects manufacturing output to grow 3.9 percent this fiscal year compared with a 7.6-percent increase a year earlier. Farm output is expected to rise 2.5 percent, compared with 7.0 percent.As well as high borrowing costs, policy paralysis in the government and uncertainty caused by the eurozone debt crisis have also dampened investment in the country of 1.2 billion people.Ratings agency Standard & Poors warned on Monday that Indias prized investment-grade credit rating was under pressure due to weak government action, slower economic growth, stubborn inflation and growing public debt.
