Rangarajan pegs GDP growth at 7.5% to 8% in 2008-09

Rangarajan pegs GDP growth at 7.5% to 8% in 2008-09

C.
Rangarajan, chairman of Prime Minister Manmohan Singh's Economic
Advisory Council, today said the economy is expected to grow at 7.5% to
8% in the fiscal year ending March 2009. He said inflation may moderate
to 8% to 9% by end March 2009.

Rangarajan, a former Reserve Bank
of India governor, said the central bank was likely to continue with
tight monetary policy unless there was a significant decline in
inflation. He also said economic growth could rebound to above 9% in
the fiscal year which ends in March 2010.

The government was
expected to meet its fiscal deficit target of 2.5% of GDP in 2008/09
although the off-budget deficit might be higher than anticipated, he
said.