Friday, September 29 2006 11:43 Hrs (IST) - World Time -

Mumbai: Reserve Bank today (Sept 29,2006) said India's economy, growing at a healthy eight per cent, would be less affected by the global slowdown due to its internal strengths and resilience, and inflation will remain in the broad range of 5.5 per cent.

"Though there would be an effect, India is likely to be less affected and in the medium term can confidently aim to remain in the broad range of GDP (8 per cent) and inflation (5.5 per cent)," RBI Governor Y V Reddy told reporters today.

Considerable domestic demand, diversified external trade of institutions and limited exposure to foreign currency of the corporates and individuals are the factors which will safeguard Indian economy from global slowdown, he said on the sidelines of FICCI-IBA global banking conference here.

Reddy pointed out to a global paradoxical phenomenon in which growth expectations were moderating and inflation was hardening.

"It is an interesting combination," he remarked.