Rangarajan to brief Prime Minister on state of economy, growth outlook

New Delhi, July 22 (ANI): The Chairman of the Prime Minister's Economic Advisory Council (PMEAC), C. Rangarajan, will brief the Prime Minister, Dr Manmohan Singh, on the state of the economy and the growth outlook on Friday.

Rangarajan is expected to brief Dr Singh about Gross Domestic Product (GDP) projections and the challenges before the economy, notably the high inflation ahead of the monetary policy review by the Reserve Bank of India (RBI) scheduled for next Tuesday.

"We will submit the economic outlook for 2010-11 (to the Prime Minister) on Friday," The Hindu quoted Rangarajan as saying.

Earlier in its report for the month of February, the PMEAC had projected an 8.2 percent economic growth for the current fiscal and an 8.5 percent GDP growth.

The major challenge for the government and the RBI is, however, to tame both core inflation, which was ruling at 10.55 percent in June and food inflation at 12.81 percent in the second week of July.

Cabinet Secretary K.M. Chandrasekhar had on July 20 said inflation is likely to drop to 5-6 percent by the end of December and the economic growth would accelerate to 8.5 percent during the current fiscal. (ANI)