New Delhi, Aug 13 : Prime Minister's Economic Advisory Council (EAC) lowered the GDP growth projection to 7.7 percent during 2008-09 as against an earlier estimate of 8.5 percent.
According to the report, the agriculture sector is predicted to grow by a very low two per cent, worse than the poor 4.5 per cent growth recorded last fiscal.
The services sector will grow 9.6 per cent, predicts the report, compared to 10.8 per cent last fiscal.
Briefing the media, outgoing EAC Chairman C Rangarajan said that tight monetary stance was necessary to put the economy, which grew by nine per cent last fiscal, on the right track.
"The inflation can be brought down to eight to nine percent by March next year. Tight monetary policy is necessary to put the economy back on the right track," he added.
The outlook comes a few days after Rangarajan resigned. He has been replaced by noted economist Suresh Tendulkar, who was earlier a member of the panel.
Rangarajan had already indicated that the economy would grow between 7.5 and 8 per cent this year.