NEW DELHI: Finance minister Pranab Mukherjee today said he would rather go with the economic growth projection of the Prime Minister's economic panel, saying the six per cent forecast by RBI was way too conservative.
"RBI always makes very hard and conservative assessment... The GDP growth I am inclined to accept (is) the figure of Prime Minister's Economic Advisory Council, headed by C Ranagarajan, that means from 6.5 to 6.75 per cent," he told reporters.
In its monetary policy review, the central bank retained its earlier forecast of six per cent growth for FY'10.
Asked whether stimulus measures will continue, he said, "As I mentioned that until the economy is on a firm recovery path, it will continue."
The finance minister said figures for second quarter economic growth are yet to come, but industry has started picking up. The Indian economy grew by 6.1 per cent in the first quarter.
On inflation, Mukherjee said the government has taken steps to ensure that the adverse impact of inflationary pressures is reduced by strengthening supply management. The Reserve Bank has projected wholesale price inflation to reach 6.5 per cent by this fiscal-end, higher than its earlier estimate of five per cent.
"RBI always makes very hard and conservative assessment... The GDP growth I am inclined to accept (is) the figure of Prime Minister's Economic Advisory Council, headed by C Ranagarajan, that means from 6.5 to 6.75 per cent," he told reporters.
In its monetary policy review, the central bank retained its earlier forecast of six per cent growth for FY'10.
Asked whether stimulus measures will continue, he said, "As I mentioned that until the economy is on a firm recovery path, it will continue."
The finance minister said figures for second quarter economic growth are yet to come, but industry has started picking up. The Indian economy grew by 6.1 per cent in the first quarter.
On inflation, Mukherjee said the government has taken steps to ensure that the adverse impact of inflationary pressures is reduced by strengthening supply management. The Reserve Bank has projected wholesale price inflation to reach 6.5 per cent by this fiscal-end, higher than its earlier estimate of five per cent.
POSTED BY: PALLAVI SINGH
PGDM III SEM
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