Hyderabad: India's economic growth is expected to be between 6 and 6.5 per cent in the 2009-10 fiscal year, the chairman of the prime minister's economic advisory panel said on Friday.
"Exports are not doing well, industrial production is showing signs of picking up, but the drought will have an impact on growth and my estimate is growth will be between 6.0 to 6.5 per cent this year," C Rangarajan told reporters.
The agriculture situation in India too is disturbing but it is too early to take action on inflation, Reserve Bank of India Governor Duvvuri Subbarao said on the sidelines of an event on Friday.
There was no policy decision yet on increasing the size of government borrowing, he said.
On Thursday, Standard & Poor's projected India's economy to report positive growth in 2009 and 2010 mainly because of domestic demand, despite the global downturn and financial turmoil.
"We anticipate that India will remain in positive growth territory throughout this global recession and financial turmoil," said S&P's Asia-Pacific chief economist Subir Gokarn.
"Domestic policy responses, both monetary and fiscal, appear to have played a significant role in shoring up domestic demand in an environment of drastically reduced exports," he added.
Gokarn said India's gross domestic product (GDP) growth is forecast in the range of 5.8-6.3 per cent in 2009 and 6.8-7.3 percent in 2010.
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