Faced with a delay in monsoon and poor performance of farm sector, the Centre for Monitoring of Indian Economy on Monday scaled down the economic growth rate for 2005-06 to 6 per cent from 6.6 per cent and forecast 0.7 per cent fall in farm sector growth.
The south-west monsoon arrived over Kerala after a delay of four days and its progress since then has been unsatisfactory. Forecasts of rainfall for June and July are not good, CMIE said in its monthly economic review released in New Delhi.
On account of these developments, the agriculture and allied sector is expected to witness a 0.7 per cent fall (negative growth) instead of 3.1 per cent growth projected in April.
The gross domestic product, an indicator of economic growth, was expected to grow at 6 per cent instead of 6.6 per cent forecast earlier.
However, industry and service sectors are unlikely to be affected by the poor performance of farm and allied sector, it added.