NEW DELHI: The government on Friday lowered its growth forecast for the fiscal year ending in March 2016 to 7-7.5 per cent from 8.1-8.5 per cent estimated in February.

The revision came after Asia’s third-largest economy grew 7.2 per cent in the first half of the 2015-16 fiscal year.

In its mid-year economic review presented in Parliament, the finance ministry said though the economy has made considerable progress, yet challenges remain.