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Expect India to clock 6% GDP growth in FY10: Subbarao.


Date: 15-05-2009
Subject: Expect India to clock 6% GDP growth in FY10: Subbarao
The Reserve Bank of India (RBI) Governor Dr Duvvuri Subbarao said that a gross domestic product (GDP) growth of 6% can be expected for the financial year 2009-10. On the topic of inflation, the Governor said there could be negative inflation over next the few months but it won't lead to a scenario of deflation. He predicts that the wholesale price index (WPI) inflation for end-March 2010 would be 4%. However, he added, that the consumer price index (CPI) inflation will not be as low as WPI.

The remittances have been held up, Subbarao said, adding that steps like maintaining ample rupee liquidity as well as maintaining comfortable foreign exchange liquidity have been taken.

India, he said, was affected by the global financial crisis despite exports contributing just 15% to the GDP. "It's important to implement present stimulus package completely rather than take on new ones," he said, adding that when the global recovery happens, India would be the fastest to recover.


Source : Moneycontrol

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