Team Blitz India
NEW DELHI: Indian economy will grow at around 6.5 per cent in the current fiscal, notwithstanding high oil prices and increased geopolitical tensions, NITI Aayog member Arvind Virmani has said.
Virmani further said that he does not see any impact of the US and European banking crisis on the Indian financial sector.
“So in the current fiscal year because of all the changes which have happened in the last year, I have reduced my India’s economic growth forecast by 0.5 per cent. So it is 6.5 per cent, again plus minus 0.5 per cent,” he said in a media interview published on May 1.
On Reserve Bank of India’s flexible inflation targeting, Virmani said, “We should be more like the US Federal Reserve, which has an inflation target but also takes account of GDP.”
Recently, the World Bank and the Asian Development Bank projected moderation in Indian economic growth between 6.3 per cent and 6.4 per cent due to a slowdown in consumption and challenging external conditions.
The International Monetary Fund (IMF) has also lowered India’s economic growth projection for the current fiscal to 5.9 per cent from 6.1 per cent earlier. Yet, India will continue to be the fastest-growing economy in the world.
