Dr C Ranagarajan, the Chairman of Prime Minister Manmohan Singh's economic advisory council (EAC) has projected consolidated fiscal deficit at 10.09% for FY10.
He is of the opinion that the fiscal deficit should be cut to 1% of gross domestic product (GDP) next year. He sees industrial growth at 8.2% and manufacturing growth at 7.7%. "The economy will grow by 6.5% in FY10," he says.
Ranjarajan eyes FY10 exports at USD 188.9 billion and imports at USD 306 billion. "FY10 current a/c gap is seen at 2% of gross domestic product (GDP) vs 2.6% in FY09." He is of the view that government is unlikely to exceed the borrowing target for FY10.
