The Indian economy will slow down to 8.7 per cent in the current fiscal, from a much higher growth rate of 9.4 per cent and 9.6 per cent, in the previous years, the Economy Survey said on Thursday.

The manufacturing sector will grow at 9.4 per cent in current financial year, the survey says. It sees lower agriculture growth at 2.6 per cent. The Survey has also warned against uncertainties in global markets and rising commodity prices.

But Finance Minister P Chidambaram is optimistic that in the coming year India will grow at 9 per cent.

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Economic Survey 2007-08: Complete Coverage