RBI's predicts 8.2 pc growth for current fiscal

Bank also warns that stimulus exit may have adverse impact on growth figure

PTI | April 19, 2010



A Reserve Bank of India survey has projected the economy to grow by a higher 8.2 per cent in the current fiscal, while the central bank warned that exit from stimulus could mar growth unless carefully planned.

RBI expected wholesale prices-based inflation, which is near the double-digit region now, to moderate over the next few months but warned of upside risks owing to firming global commodity prices, particularly oil.

"It is important to guard against the risk of hardening of inflation expectations conditioned by near double-digit headline WPI inflation," the apex bank said in its report released on Monday-- Macroeconomic and Monetary Developments in 2009-10 -- that takes stock of the previous fiscal.

The bank is tomorrow slated to announce its annual monetary stance for the current fiscal and bankers expect it to hike key policy rates to control inflation.

RBI said that the Indian economy exhibited a clear momentum in recovery in 2009-10, despite deficient monsoon and estimated GDP growth at 7.2 per cent (in FY'10), up from 6.7 per cent in 2008-09.

The Reserve Bank's Survey of Professional Forecasters suggested a median growth of 8.2 per cent in 2010-11.

"The exit from fiscal stimulus and the growth supportive monetary policy, unless calibrated carefully, could impact the growth process," the bank said.

The government has already begun roll-back of fiscal stimulus by partly restoring excise duty, while the RBI too has hardened its monetary stance by hiking key short-term lending and borrowing rates by 0.25 percentage points last month.

Comments

 

Other News

How to make our cities climate-resilient

Indian cities are growing at a pace that our infrastructure and climate can no longer sustain. This rapid urban sprawl increasingly strains urban systems, overshadowing the severe environmental fallout produced in its wake. The repercussions include Urban Heat Island Effect (UHI), Urban Floods, and many mo

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.

EU–India FTA 2026: A high‑stakes prescription for Indian pharma and healthcare

India’s pharmaceutical industry stands as one of the world’s market leaders of generic pharmacy with market valuation of USD 50 billion in 2026. Characterised by high volume, low-cost generic manufacturing, with an annual growth rate of 10-12% primarily propelled by exports and domestic demand,

Legends, vignettes and tales from the freedom movement

Robin Hood of Kathiawar and Other Extraordinary Stories from India’s Freedom Movement By The Paperclip  HarperCollins, 348 pages, Rs 499  

Solicitor General Tushar Mehta tells quirky tales from the world of law

The Lawful and the Awful: Quirky Tales from the World of Law By Tushar Mehta Rupa Publications, 336 pages, Rs 995  

Cabinet meet discussed `Ease of Living`, `Ease of Doing Business`

The Council of Ministers has deliberated upon valuable perspectives and best practices relating to boosting ‘Ease of Living’ and ‘Ease of Doing Business’, prime minister Narendra Modi said on Friday.   As he shared details of the Council meeting held the d





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter