The Prime Minister's economic advisory panel on Wednesday projected 7.5 - 8 per cent growth rate for the next fiscal and said the country can achieve a higher economic expansion if the global environment turns favourable.

"We might be able to achieve 8 per cent growth on our esteem ... if the world environment is favourable, we will be able to achieve high growth rate," the chairman of the Prime Minister's Economic Advisory Council (PMEAC) C. Rangarajan, said.

While releasing the Review of Economy (2011-12), he said that the growth rate in 2011-12 is likely to be 7.1 per cent, marginally higher than 6.9 per cent projected by the Central Statistical Organisaton (CSO).

Indian economy was growing at over nine per cent before the financial meltdown of 2008 pulled down the growth rate to 6.7 per cent in 2008-09.

Related Articles G8 growth talk leaves wary markets awaiting action Montek feels govt should raise petroleum prices Falling rupee a concern; Centre not sitting idle: Pranab Achieving 7.5 pc growth in 2012-13 tough task: Montek Depreciating rupee to push up prices of manufactured goods Related Images

The economy recorded a growth rate of 8.4 per cent in 2010-11, which according to the CSO estimates is expected to moderate to 6.7 per cent in the current fiscal. Rangarajan further said the efforts would be needed to achieve and sustain high growth rate.

Referring to inflation, which has remained at elevated level in 2011, he said it would moderate to 6.5 per cent by March end and 5-6 per cent in the next fiscal.

While the retail inflation based on Consumer Price Index (CPI) was 7.65 per cent in January, the Wholesale Price Index (WPI) inflation was 6.55 per cent.