The Prime Minister's economic advisory panel on Wednesday projected 7.5 - 8% growth rate for the next fiscal and said the country can achieve a higher economic expansion if the global environment turns favourable.
"We might be able to achieve 8% growth on our esteem ... if the world environment is favourable, we will be able to achieve high growth rate," the chairman of the Prime Minister's Economic Advisory Council (PMEAC), C Rangarajan, said.
While releasing the Review of Economy (2011-12), he said that the growth rate in 2011-12 is likely to be 7.1%, marginally higher than 6.9% projected by the Central Statistical Organisaton (CSO).
Indian economy was growing at over nine% before the financial meltdown of 2008 pulled down the growth rate to 6.7% in 2008-09.
The economy recorded a growth rate of 8.4% in 2010-11, which according to the CSO estimates is expected to moderate to 6.7% in the current fiscal.
Rangarajan further said the efforts would be needed to achieve and sustain high growth rate.
Referring to inflation, which has remained at elevated level in 2011, he said it would moderate to 6.5% by March end and 5-6% in the next fiscal.
While the retail inflation based on Consumer Price Index (CPI) was 7.65% in January, the Wholesale Price Index (WPI) inflation was 6.55%.