The Planning Commission today said that the economy could do better than 7.6% growth for this fiscal as projected by the Reserve Bank of India (RBI) in its half-yearly monetary policy review.
"I think, it [economy] might do better 7.6% [this fiscal]. But you cannot rule out 7.6%," Planning Commission Montek Singh Ahluwalia said.
The RBI today lowered the economic growth forecast to 7.6% for the current fiscal. The central bank had earlier projected the Indian economy to grow by 8% in 2011-12, lower than 8.5% recorded in 2010-11.
"Slower global growth will have an adverse impact on domestic growth, particularly on industrial production, given the rising inter-linkages of the Indian economy with the global economy," the RBI said in its Monetary Policy Review.
About the raising short-term lending and borrowing rate by 25 basis points (0.25%), Ahluwalia said, "It is more or less on expected lines. They have rasied the repo rate by 25 basis point but RBI also said no more rate hike. I think that market can sense that this one more effort [to tame inflation]."
On deregulating the saving bank account interest rate, he said, "I have always been in favour of deregulating the saving banking [interest] rates. Keeping it fixed have been an illogical thing, so it is a good news."
