Economy growing at near 8% in 2011-12: PM

Economy growing at near 8% in 2011-12: PM

New Delhi: The Indian economy will achieve near 8% growth in the current financial year despite the global slowdown, while lowering inflation remains a challenge in the short term, Prime Minister Manmohan Singh said in a statement on Tuesday.

“Despite the global slowdown, we will still achieve a growth rate of close to 8% this year," the statement said.

India’s headline inflation accelerated in August to 9.78%, its highest in over a year, and is a major concern for the central government and Reserve Bank of India (RBI).

Economists expect the central bank, which has raised rates 12 times since March 2010, to increase interest rates one more time in 2011 to fight persistently high inflation.

That move could come as early as 25 October, when the RBI meets to review its monetary policy.

September headline inflation data is due on Friday.