The government today lowered its growth forecast for the current fiscal year to 7-7.5 percent from 8.1-8.5 percent estimated in February. The revision comes after Asia's third-largest economy grew 7.2 percent 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.Finance Ministry also said it is looking at retail inflation of 6% for the fiscal year. The CPI-based inflation figure has been inching up on account of a poor monsoon and stood at 5.7% for the month of November.The Government also promised to hold fiscal deficit at 3.9% of total GDP, while projecting a revenue deficit of 2.8%. It cautioned that it would reassess commitment to cut fiscal deficit by 0.4% by next fiscal.Going forward, the economic review listed GST, which has struggled to pass muster in Parliament, and a bankruptcy law, as keys to power long-term growth in the country.The Mid–year economic review is authored by Chief Economic Advisor Arvind Subramanian.