India not in recessionary mode: RBI

The GDP of India for FY09 will be round 7.8 per cent according to projection from the RBI. The Governor of RBI, D Subarao assures as India's growth is mainly driven by domestic demand and consumption, the country would be less affected by the global financial turmoil but it would not go completely unscathed, according to media reports. The global meltdown is the only factor that brought the projection figure of the India growth to 7.5 per cent.

The inflation however has been declining but still a concern for the nation as there is liquidity crisis too. But inflation continued to be a matter of concern as RBI forecast is based on not merely the wholesale price index but also other data. The RBI makes a deeper study and if one analyses the consumer price index, the CPI for agricultural and rural labour was up by 11 per cent and that for industry was up nine per cent, according to media reports.