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PMEAC pegs GDP growth at 8.2 per cent in FY 12
1 August 2011: India's GDP growth will slow down to 8.2 per cent in the FY 12 and the inflation rate is expected to remain high at 9per cent till October 2011.
The global economic and financial situation is unlikely to improve and this could impact the domestic economy.
The Indian economy grew by 8.5 per cent in FY 11. The PMEAC's projection for 2011-12 is higher than the 8per cent growth forecast made by the Reserve Bank in its annual monetary policy, but it is lower than the government's target of 8.5 per cent.
The RBI will have to continue with its monetary tightening policy measures to contain inflation. It has already hiked benchmark rates 11 times since March, 2010, as part of efforts to tame inflation.
Headline inflation has been above 9 per cent since December, 2010.
Source: Business Standards