The National Council for Applied Economic Research (NCAER) has revised its projections for India's GDP growth to 8.44 per cent for 2006-07, up from its October 2006 lower estimate of 8.13 per cent.

It cites higher growth in industry and services sectors and unchanged inflation expectations, the decline in crude oil prices and the expected surplus in tax revenues.

In its quarterly review of the economy released today, the National Council of Applied Economic Research, however, has kept its forecast for average wholesale price index-based inflation unchanged at 4.98 per cent for the current fiscal.

NCAER's GDP growth projection is lower than the current widespread expectation of 9 per cent in the first two quarters of the current fiscal, but higher than the October estimates.

The review projected lower fiscal deficit at 3.63 per cent of GDP for this fiscal against the earlier forecast of 3.71 per cent and a dip in current account deficit to 1.93 per cent of GDP against 2.11 per cent assessed in October.

It has projected higher growth in industry and services sectors by 0.53 per cent and 0.29 per cent respectively to 9.13 per cent and 10.24 per cent.

However, growth projection for the agriculture sector has been retained at 2.65 per cent for the entire fiscal. The sector has had to contend with an erratic and uneven rainfall across regions in the current monsoon period, it said.