RBI maintains 8 percent growth forecast for 2011-12

August 12th, 2011 - 6:03 pm ICT by IANS  

New Delhi, Aug 12 (IANS) The Reserve Bank of India (RBI) has stuck to its economic growth forecast of eight percent for the current fiscal despite the recent sharp variations in monthly industrial output figures.

“We think growth will be eight percent in 2011-12. We have made this projection in the policy statement and there is no change in it,” RBI Deputy Governor Subir Gokarn told reporters on the sidelines of an event organised by the Confederation of Indian Industry (CII) here.

He said the yearly projections should not be guided by the monthly and weekly fluctuations in industrial output and inflation numbers.

“In our policy statement in July, we said that we were seeing signs of growth moderating but these were not broadbased and this number (June industrial output growth) validates that view,” Gokarn said.

India’s industrial output grew better than the expected 8.8 percent in June year-on-year as compared to 5.6 percent in the previous month.

Gokarn said June factory output figures were encouraging but it would not be a deciding factor in the central bank’s policy making.

“Just one number here and there is not a decisive number,” said Gokarn.

The Prime Minister’s Economic Advisory Council, headed by C. Rangarajan, recently lowered the GDP growth forecast for 2011-12 at 8.2 percent against the budgetary estimate of 9 percent (plus-minus 0.25 percent).

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