The Economic Survey tabled by the Finance Minister today said that, GDP growth would slow down to 8.7% for the year 2007-08 compared to 9.6 percent last year.

The survey also pointed out that inflationary impact on flow of foreign funds, slowdown in the United States Economy, appreciation of rupee and sluggish infrastructure sector are the major challenges before India's economy, which has slowed down the growth rate of Gross Domestic Product.

The survey has also put a target rate of 9% growth in Gross Domestic Product during 11th plan period. Inflation is projected at 4.4 percent in the current fiscal.

Both slow growth in Agriculture and manufacturing sector is being forecasted during the current fiscal.