While overall inflation will halve from the current level of 10.55% in June, economic growth would accelerate to 8.5% during the current fiscal
Buoyed by the prospects of a good monsoon, the government today said inflation would halve to 5%-6% by December end and the economic growth would accelerate to 8.5% during the current fiscal, reports PTI.
"With a good monsoon and good crop, inflation will certainly fall. Experts are saying that inflation will be 5%-6% per cent by year end... I don't have any reason to disbelieve it," Cabinet secretary K M Chandrasekhar told reporters in New Delhi.
The overall inflation, which is in double-digit for last several months, was 10.55% in June. As far as food inflation is concerned, he said, "Over the last 3-4 months, we have been able to maintain prices at stable levels. Prices have more or less stabilised."
On growth prospects, he said, "We are estimating something like 8.5% growth". The Indian economy grew by grew by 7.4% during 2009-10.
Following the global economic crisis, the growth rate slipped from over 9% to 6.7% during 2008-09. The economy, however, started picking up following the stimulus packages given by the government and the Reserve Bank of India (RBI) to boost demand and increase liquidity.
When asked about the International Monetary Fund's (IMF) projection of 9.5%, he said, India can even achieve 10% growth in the near future. On fiscal deficit, he said it could fall to below the budget estimate of 5.5% because of high non-tax revenue receipts.
The government received over Rs1 lakh crore from the sale of spectrum against the original estimate of Rs35,000 crore.