RBI Governor expects 8.5 pc GDP growth in current fiscal

Chennai, Dec 14 (UNI) Reserve Bank of India Governor Y V Reddy today said the Gross Domestic Product (GDP) growth for the current year is expected to be about 8.5 per cent, while inflation is likely to be below five per cent.

Addressing a Management Seminar conducted by the Great Lakes Institute of Management (GLIM), he said the external sector continued to be stable and strong.

The financial year position was likely to be on track, he said, adding the financial market, by and large, particularly money market, government securities market and products market, were expected to be reasonably stable.

Mr Reddy said RBI was commited to ensure stability and stable value of rupee domestically and globally, which was accorded top priority.

The RBI Governor said people were inclined to believe that we are stable and foreign investments were pouring in. However, according to macro economic indicators, India does not fare well, he added.

He said if the economy was managed to ensure stability, the risks do not materialise, despite shortcomings. The credit goes to the policy, he added.

He said the policy makers in India, irrespective of political set-up had a macro policy environment that had always ensured stability.

India was a stable market and contributing to global stability through "golden policies", he added.

UNI