Cabinet Secretary, KM Chandrasekhar said that all indications seen were favourable to the economy and sees an 8.5% GDP growth in FY11. The corporate sector situation looks encouraging, he added.

On the high inflation figures, Chandrasekhar said that global supply conditions and drought had led to the food price rise but said prices have stabilised over the last three to four months. A supply mismatch in pulses, however, is likely to continue he said as some constraints still prevail.

Source: moneycontrol