India’s economic growth is expected to touch 8.4 per cent in 2010-11 while it is likely to be 7.2 per cent in 2009-10, the Federation of Indian Chambers of Commerce and Industry (FICCI) said in its economic outlook survey, which was released on Friday. FICCI’s projections are in line with the government forecast.
FICCI said that GDP growth in the fourth quarter of 2009-10 could touch 8.7 per cent while it could marginally increase to 8.9 per cent in the first quarter of the current fiscal.
The survey, indicated that with annual inflation for the month of March touching 9.9 per cent, the central bank could go in for a hike in repo – the rate at which banks borrow from RBI – and reverse repo—the rate at which RBI borrows from the bank.
As per the survey the rates could be hiked by 25 basis points each in the monetary policy slated on April 20. The cash reserve ratio, the minimum amount of deposits banks are required to park with the central bank, could also rise 50 basis points.