Kaushik Basu says 9 per cent growth rate within target next fiscal

Buoyed by the 8.6 per cent growth rate estimates for current fiscal, the government's chief economic advisor Kaushik Basu today said, a 9 per cent economic expansion for the next financial year was well within target.

"The prospects for the world as a whole are looking better but still there are uncertain clouds. In that scenario, growth of 8.6 per cent is absolutely remarkable. So the 9 per cent, which we are aiming for the year, is now looking well within target," Basu told reporters.

On whether the inflation would affect the growth process, Basu said, "I really don't see inflation disrupting the growth process."

As a matter of fact, he said, the GDP number would have a dampening effect on inflationary pressures.

"We have been concerned about inflation but I really feel that the number we have got today is going to dampen inflationary expectation. So I am not seeing that (inflation) could jeopardise the growth story."

Basu further said that growth prospects for the next two quarters were also looking up but IIP number, which had been fluctuating needed to be looked at.