The industrial GDP growth looks set to average at 4.6 per cent during FY 09, significantly lower than the 8.1 per cent in FY 08, Dun & Bradstreet said in its Economy Outlook 2009-10 report in Mumbai.
However, on account of improvement in demand during H2 FY 10, industrial GDP growth is expected to improve and average at 5.5 per cent during FY 10, the D&B report said.
Growth in services sector GDP is also expected to slowdown to single digit level of 9.5 per cent in FY 09 mainly owing to poor performance of trade and financial sectors.
However, services sector GDP growth is projected to decelerate to 8.3 per cent for FY 10 as the lagged effects of slowdown in the industrial sector on services intensify.
Though the service sector growth will stagger, it is expected to register the highest growth within the three broad sectors of the economy; as a result, the service sector will retain its importance in GDP and its contribution is expected to increase from 55.7 per cent in FY 08 to 58 per cent in FY 10.
D&B expects the industrial production to pick up in H2 FY 10.
D&B said that the growth in industrial production is to be around 3.5 per cent during FY 09 as compared with 8.5 per cent during FY 08.