(RTTNews) - The Planning Commission has projected that India’s gross domestic product could decline to 5.5% due to the impact of a sharp decline in farm output, reported the Economic Times. This is much lower than the 6.3% growth in national income projected by the Planning Commission on the worst case assumption that farm output will drop by 2.5%.

In a background note on the economy’s performance, the plan panel said if the fall in farm output exceeds the projected level, it might pull down the GDP growth. It also said that there is a possibility for more loss in agricultural output as the fall in output of kharif crop may be higher than estimated and the prevailing adverse weather conditions may impact rabi crop output.

The plan panel sees a growth of 7.8% in industry and 8.2% growth in services sectors in the second half of the year. However, it added that the industrial growth depends on the revival of investment activity as well as the impact of the government’s stimulus packages. It pointed out signs of growth in manufacturing, power generation and mining activities.

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