PM advisory panel sharply lowers GDP estimate

India's economy is expected to grow at 5.3% in the current fiscal year, the prime minister's economic advisory panel said on Friday, sharply lower than an estimate of 6.4% it made earlier this year.

India's economy is expected to grow at 5.3% in the current fiscal year, the prime minister's economic advisory panel said on Friday, sharply lower than an estimate of 6.4% it made earlier this year.

The prime minister's Economic Advisory Council also said containing the fiscal deficit within the budgeted target of 4.8% of GDP could be a challenge.

The new growth estimates are in line with projections of the central bank and many private economists, who expect Asia's third-largest economy to grow at around 5%.

India's economy grew at 4.4 percent in the three months to June – the slowest quarterly rate since the global financial crisis – hurt by a contraction in mining and manufacturing.

The panel said inflation for the current fiscal year is expected to be 5.5%, lower than 6% last year.