Indian Economy To Grow At 8.75% This Fiscal: IMF

The International Monetary Fund has projected the Indian economy to grow at a rate 8.75 per cent this fiscal on the back of rising productivity and investment. Though the country''s favourable outlook attracts huge capital flows which help finance investment, it also poses a challenge to find a balance between exchange rate stability and financial openness, IMF Executive Directors said in their summary note. The IMF estimate comes in the wake of India revising upwards its growth estimates for the last fiscal to 9.6 per cent from earlier calculation of 9.4 per cent a few days ago and Finance Minister P Chidambaram exuding the confidence that the economy will grow close to nine per cent for the current fiscal. On the other hand, the Reserve Bank of India in its quarterly review of monetary policy has retained its estimate of at 8.5 per cent this fiscal, true to the conservative style of most central banks. The apex bank also maintained a status quo policy rates against market expectation of a reduction in key rates.