The Prime Minister's Economic Advisory Council said on Monday it expects economic growth to moderate to 9 per cent in the current financial year from 9.4 per cent in the last fiscal.
The panel, headed by former RBI governor C Rangarajan, in its economic outlook for 2007-08 also projected inflation to remain within 4 per cent.
"After factoring in future correction in petroleum products prices, it should be possible to maintain the headline rate close to four per cent," it said.
Exports growth is expected to slow down to 18 per cent in dollar terms in the wake of strengthening of the Indian currency against the US greenback. The council expected exports to touch $147 billion, less than the government's target of $160 billion. Imports are projected to cross $223 billion.
The panel projected foreign direct investment of $15 billion in 2007-08 from $8.4 billion last fiscal. Net portfolio inflows are estimated at $12.5 billion.
The council suggested a three-pronged strategy to deal with the problem of capital inflows and rupee appreciation. These include absorbing capital inflows into reserves, discourage inflows by putting some restrictions and liberalising capital outflows.
© 2026