By NNN-PTI,
Bangalore, India : With inflation hovering around 12 per cent, a top economist said inflation is expected to ease to five to six per cent in the next one year from the current double digit mark.
“I am hopeful that within a year….Same month (August) next year, inflation will be down to normal levels,” said Arvind Virmani, Chief Economic Adviser, Department of Economic Affairs, Ministry of Finance on Wednesday.
“If you ask me what’s normal levels, it would be five to six per cent. That’s my forecast,” he told reporters in response to questions on the sidelines of a session on state of the Indian economy, organised by CII Karnataka.
For the week ended July 19, inflation rose to 11.98 per cent.
Speaking at the meeting, Virmani stressed that India would definitely achieve an average GDP growth of nine per cent in the 11th plan period (April 2007-March 2012).
“I have absolutely no doubt that Indian economy has come on a higher growth path. Next five years (11th Five Year Plan), I have no doubt that average growth will be nine per cent,” he said.
“We are getting enough capacities to sustain nine per cent growth,” he said, adding, even if growth rate of investment declines from 18 per cent to nine per cent, “We (India) will still maintain nine per cent growth (GDP)”.