New Delhi, Jan 17: Dr. C. Rangarajan, Chairman of the Economic Advisory Council (EAC), on Thursday said that the economic growth of the country in 2007-08 is likely to be 8.90 per cent with Agriculture growing at 3.6 per cent, Industry 9.7 per cent and Services 10.3 per cent.

The EAC to the Prime Minister released its review of the Economy 2007-08, which is an update on the Economic Outlook for 2007 in New Delhi today.

The report released by C. Rangarajan, said India was expected to grow at 8.5 per cent in fiscal 2008/09, but listed several downside risks.

"The Indian Economy is much less dependent on the external Markets than the Chinese Economy," the panel's review of the Economy said.

The report said the Economy would grow 8.9 per cent in 2007/08, slightly lower than previously expected due to slowing manufacturing expansion and sluggish output growth in power and mining.

Asia's third-largest Economy has expanded at an average of 8.6 per cent over the past four years and is poised for another year at a similar pace in 2007/08.

India grew 9.4 per cent in the 2006/07 fiscal year, its strongest in 18 years and second only to China among major economies.

But annual growth dipped to 8.9 per cent in the September quarter, falling below 9 per cent for the first time in three quarters, as industrial output slowed due to monetary tightening designed to trim inflation. (ANI)