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Higher growth in 2009-10 at 6.5 per cent
July 29, 2009: The Reserve Bank of India’s (RBI) latest round of professional forecasters’ survey has placed the country’s overall growth rate higher at 6.5 per cent for 2009-10 against 5.7 per cent projected in the earlier survey.
However, the RBI’s Report on Macroeconomic and Monetary Developments: First Quarter Review for 2009-10, warned that there are indications of inflation firming up by the end-December 2009. It attributed price pressures to the waning base effect of 2008, increase in commodity prices, delayed progress of monsoon potentially driving up food prices, and the inflationary implications of expansionary fiscal and monetary policies.
While the sectoral growth rate for the agriculture sector, in sync with the delayed monsoon, has been revised downwards at 2.5 per cent (against 3 per cent in the last survey), the forecast for the industry and services sectors was revised upwards to 4.8 per cent (4.1 per cent) and 8.3 per cent (7.5 per cent), respectively.
Source: Hindu Business Line