C Rangarajan, Chairman, Prime Minister's Economic Advisory Council has speculated that GDP may grow at 7.5-8% this fiscal. Basing his opinion on certain factors responsible for slow growth he said that unless there is a change in price situation, monetary policy stance would continue.

 

According to him, there are certain factors, both domestic and external, which may add to slowdown the growth rate, but we still think that the growth rate would be between 7.5 to 8 per cent. Earlier, he had said that crude oil prices world over would have impact and India might be able to grow between 8 and 8.5 per cent.

 

Also, he had said that the country, for the time being, would still be “shielded away” from high international oil prices. And, now, his earlier calculations are falling apart, now he says that it will grow at 7.5-8%. On inflation he commented that it would come down to about 8 per cent by the end of this fiscal.