PMEAC projects 7.5-8% growth rate for 2012-13

The Prime Minister's economic advisory panel today 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.

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.

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"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.

While the retail inflation based on Consumer Price Index (CPI) was 7.65% in January, the Wholesale Price Index (WPI) inflation was 6.55%.