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India won't expand FY12 borrowing plan, says FM Pranab Mukherjee
July, 12th 2011

The Indian government will not expand its 2011/12 borrowing programme , Finance Minister Pranab Mukherjee said on Tuesday. The government plans to borrow 4.17 trillion ($93.2 billion) rupees in the current fiscal year, with 2.5 trillion scheduled between April and September.

Pranab Mukherjee also said the industrial output growth in May was "not encouraging".

India's industrial output in May rose 5.6 percent, the slowest pace of growth in nine months, indicating taut monetary policy and high inflation were acting as brakes on the economy.

But the central bank is still expected to raise rates at its quarterly policy review on July 26 to contain stubbornly high inflation.

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