labels: economy - general
Global economic slowdown could impact India: World Banknews
23 June 2006

New Delhi: The World Bank has warned that rising global interest rates and economic slowdown could impact India''s growth. However, the bank''s view is that India would still continue to be a high growth economy due to its strong macro economic fundamentals.

The bank feels that it would be remarkable if the Indian economy could grow by eight per cent year after year. The Indian economy grew by 8.4 per cent last fiscal against 7.5 per cent in the previous fiscal.

The Reserve Bank has projected the economy to grow at 7.5-8 per cent this fiscal. To contain inflation, RBI had raised repo rates by 0.25 per cent on June 8. Despite this, inflation stood at 5.24 per cent during the week ended June 10.

After announcing measures to augment supply of pulses, wheat and sugar, finance minister P Chidambaram today said more fiscal and monetary measures, if needed, would be taken to curb inflation, which could put upward pressure on interest rates.

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Global economic slowdown could impact India: World Bank