"The figure of 8.5 per cent may be seen to be a baseline projection that would be impacted," he said.
Dr Rangarajan hoped that the slowdown in the industrial countries would not have any impact on growth rate in India. "When I said that it would depend upon the amount of recession I mean recession in countries like USA, UK and European countries," he explained.
He accepted that the growth rate of 8.9 per cent in 2007-08 has been marginally lower than expected by the advisory council. Dr Rangarajan said that while he is confident that the fiscal deficit of 3 per cent he is not sure if the same could be done with revenue deficit.
On the decline in the power sector target, he said, " We are short of our target by 10,000 MW. The industrial growth has come down from 10.6 per cent to 9.7 per cent. Despite considerable appreciation in Rupee, we have done well in capital inflows. Capital inflows of $103 billion is much higher that $58 billion projected," he said.