This Article is From Oct 26, 2009

RBI cuts economic growth forecast to 6%

New Delhi: In its macro economic review, the Reserve Bank of India has cut FY10 GDP growth forecast to 6 per cent from its earlier estimate of 6.5 per cent , saying that India's growth faces upside prospects as well as downside risks.

The central bank has raised its industrial growth forecast to 6.3 per cent from 4.8 per cent. It estimates farm growth to post a negative growth of 1.4 per cent in this fiscal. But it has lowered its estimate of services growth to 8.1 per cent from 8.3 per cent.

The central bank noted the widening divergence between the country's consumer, and wholesale inflation, saying that the consumer price inflation continues to remain firm.
The RBI said that the government has 74 per cent of gross market borrowing. 

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