RBI today revised its GDP forecasts for the year 2010-11 to 8.5% from the earlier forecasts of 8%. The revision was taking into account the progress of monsoon and its favorable impact on rural demand.
The RBI said that though the cumulative rainfall was 14% below LPA, its better than the last year. Exports kept on growing. The growth has been positive since October 2009 despite the concerns of sovereign debt crisis in Europe. Profitability and sales in corporates were also on high indicating improvements in domestic demand as well.
The Reserve Bank's upward revision of the GDP growth projection for 2010-11 to 8.5% from 8% with an upside bias in April 2010 indicates that the economy is steadily reverting to its pre-crisis growth trajectory.