Inflation battle still on, says RBI
The Reserve Bank of India is keeping its pressure up on inflation. HT reports.business Updated: Aug 24, 2010 23:38 IST
The Reserve Bank of India is keeping its pressure up on inflation.
"While the growth outlook for 2010-11 remains robust, inflation has emerged as a major concern," the central bank said in its annual report released on Tuesday, signalling that its year-long battle on the priceline hovering around double-digit levels is far from over.
"Inflation pressures are coming up sharply while the global economy has moved from a state of some comfort to a state of less comfort," said Subir Gokarn, RBI deputy governor.
However, RBI sees the country's GDP growingat 8.5 per cent in the year 2010-11 as the economy comes out of a slowdown as a result of the global financial crisis.
India had avoided a financial crisis at home and the risk of a potential output shock is remote, the report observed.
"With fiscal consolidation, favourable demography and further structural reforms, the potential growth could be raised to double digit level," added the report.