Indian economy to grow close to 7% in 2008/09

The Chairman of Prime Minister's Advisory Panel on Friday said that India is likely to grow close to 7 per cent in 2008-09. It may also expand at a slightly faster pace next fiscal but would depend on an improvement in the global economy. The Reserve Bank of India has cut its key - lending rate by 350 basis points since October, while the government has cut duties on manufactured products by 4 percentage points and pledged higher spending even at the cost of a wider fiscal deficit.