North Block View
On the economy: If the monsoon is as good as it promises to be, and the liquidity crunch has eased a bit, and if public investment in irrigation takes place this year, and if the RIDF (Rural Infrastructure Development Fund) too take off substantially more than it did last year in
terms of actual disbursements, I expect the economy to grow at the
rate of not less than 6.5 per cent.
On inflation: Were not trying to consciously increase the inflation rate. I hope it will eventually rise to less than 7 per cent. My advisors have told me that there could be a slight slowdown in the demand in some sectors, which will dampen inflationary expectations.
On rupee value: I dont think the value of the rupee will be a major problem either. Its a function not only of of inflation but capital inflows as well. If foreign capital keeps coming in according to our estimates, the rupee should hold its own.