Eco to grow 8.5%; Inflation to ease to 6.5% by Mar`11: PMEAC

New Delhi, July 23 (PTI) Indian Prime Minister's Economic
Advisory Council Friday said the country's economy will grow
by 8.5 per cent, up from a projected 8.2 per cent, and
inflation will come down from double digits to 6.5 per cent by
the end of 2010-11.
The growth projection has been revised upwards on account
of prospects of good monsoon, PMEAC Chairman C Rangarajan said
while releasing the economic outlook for the current fiscal.
It forecast a growth of 9 per cent for 2011-12.
In February, the Council had projected a growth rate of
8.2 per cent for the current fiscal.
At the same time, it expected prices to moderate on
account of good crop and inflation to cool partly due to base
effect and drop signficantly by March 2011 from over 10.55 per
cent now.
Rangarajan was speaking to reporters after presenting the
Economic Outlook for 2010-11 to Prime Minsister Manmohan
Singh. PTI