Crude shock: Pranab mulls scaling down growth projection to 8%

Posted By: Religare
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Crude shock: Pranab mulls scaling down growth projection
The Indian Finance Ministry has expressed concerns that India might have to settle with an 8 growth in its gross domestic product (GDP) in 2011, in case the soaring crude oil prices in the international market doesn't show any moderation.

Finance Minister, Pranab Mukherjee, quoted, "If oil prices continue to exert its pressure at the existing level, it will be difficult for us to manage both inflation and higher GDP growth merely by resorting to domestic policies. Therefore, there may be a possibility that our GDP growth may come down to 8 per cent from the projected level of 9 per cent plus-minus 0.2 (per cent)."

Prior to this, Reserve Bank of India (RBI) has lowered its projection to an 8 per cent growth for the fiscal, taking into consideration rising oil prices, high commodity prices and persistent risks in the Euro-zone nations.

Read more about: gdp, rbi, oil and gas
Story first published: Friday, May 6, 2011, 12:31 [IST]
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