The Prime Minister's Economic Advisory Council Chairman C Rangarajan has said the hike in interest rates will not impact the high economic growth in the face of strong fundamentals.
"The economic growth momentum will be sustained at over eight per cent levels this year...And the interest rate hike will not impact economic growth," he said, implying that there was no overheating of the economy.
Speaking to reporters on the sidelines of a function in Mumbai on Tuesday night, Dr Rangarajan said the fall in industrial output to six per cent in October could not be taken as an indication of a 'slow down in the Indian economy'.
"I don't see the behaviour of one month coming in the way of rapid growth," he said.
Admitting that agricultural growth had not been of the order necessary to maintain a high level of employment, he nevertheless said that the growth process will not be affected.