New Delhi: Joining the chorus of the Opposition and industrial sector, the Reserve Bank of India has held the uncertain policy making of the Central government as a contributing factor for the economic slowdown in the country.

In its Macroeconomic and Monetary Developments (MMD) report released on Monday the RBI has projected the growth rate to be 7 percent. In its report, RBI said, amidst the present domestic and the global economic crisis the growth in the GDP would be lower than 7.6 percent.

According to the forecasts of the RBI, the growth rate will be around 7 percent rather than 7.6 percent as projected three months ago.  Also, there are no signs of improvement in the growth rate in the coming two years. On the other hand India Inc has claimed that the growth rate would be lower than 7 percent. Whereas FICCI has projected 6.9 percent growth rate for 2011-12 as 7.1 percent for 2012-13.

The apex bank condemned the Central government on its inability in timely policy making which has resulted in the present economic slowdown in the country.  RBI in its report has urged the Central government to take timely decisions on the policies on food availability, fiscal status, investment in infrastructure, land acquisition and skills development which would strengthen the investment prospect in our country. Also, this would help in implementation of Direct Tax Code (DTC) and Goods and Services Tax (GST) in the next financial year 2012-13.

The RBI in its report said that the global uncertainty cannot be alone held responsible for the economic slowdown in the country; the domestic policies too played a role in it. Also, the growth rate could be improved by instilling some confidence in the industrial sector.

JPN/Bureau