C. Rangarajan the chairman of the Prime Minister’s Economic Advisory Council has projected a GDP growth between 7.5 percent to 8 percent in the year 2011-2012 financial year.
On friday, Mr. Rangarajan said “Initially, the growth rate forecast for 2011-12 by the council was 8.2 per cent. The world situation is not very encouraging and it may vary between 7.5 per cent to 8 per cent.” He also added that that India has the potential of growing at 9 per cent in a sustained way.
The former RBI governor Mr. C. Rangarajan said that Savings rate in India has crossed 34 per cent of GDP, while the investment rate exceeds 36 per cent of the Indian GDP. He also said that the target of keeping the fiscal deficit at 4.6 per cent of the GDP for 2011-12 would be difficult due to the Global Economic slowdown and Eurozone Crisis.