NEW DELHI: India has forecast its economy will grow 8% to 8.5% for the fiscal year starting in April, down from 9.2% projected in the current year, as it fights a spike in COVID-19 cases and rising inflationary pressure.

At that pace, India’s economic growth next fiscal year will still be the fastest among major economies.

All macro indicators indicated Asia’s third-largest economy was well placed to face challenges, helped by improving farm and industrial output growth, the government’s annual economic survey said on Monday.

The report, tabled by finance minister Nirmala Sitharaman in parliament ahead of the annual budget on Tuesday, warned about risks from global inflation and pandemic-related disruptions.