India is optimistic of beating the growth projection of the International Monetary Fund (IMF)of 5.1% this year, as there are hopeful signals from cement, steel and capital goods sectors, reports PTI, quoting Cabinet Secretary K M Chandrasekhar.

The Cabinet Secretary however, said that the private sector banks mostly, had not cut interest rates as expected, on the Reseve Bank of India easing the monetary policy.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said India would grow 6.5% in the current fiscal and in the next fiscal. He said that the impact of the stimulus package would be felt in the first quarter of next fiscal. He further said that on a calendar-year basis, 2009 would be bad compared to 2008. He added that both fiscal and monetary policies should face risks but the rural economy would not be much affected.

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