India: Reacting on Economic Outlook released for 2010-11 by Chairman, Economic Advisory Council to the Prime Minister, Dr. C. Rangrajan, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that it was on expected lines accepting that containment of inflation at 6.5 per cent will remain a challenge even beyond March 2011 due to supply constraints.

In a statement, ASSOCHAM President, Dr. Swati Piramal said that buoyancy in Indian economy will continue and fuel GDP growth even beyond 8.5 per cent but fiscal deficit will remain consolidated close to 8.5 per cent of GDP in current fiscal. External engagements are likely to suffer slightly on account of Euro crisis but economy in general will perform better than what it did for National GDP in fiscal 2009-10.

Dr. Piramal added that inflationary pressures will remain for remaining months of current fiscal though in subdued form and Reserve Bank of India (RBI) is expected to swing into action to bring about balancing act between growth and inflation.

Source: http://www.assocham.org/prels/shownews.php?id=2510