The Reserve Bank of India (RBI), the central bank of India, announced that it forecasts 6% growth in Real Gross Domestic Product (GDP) in the present fiscal, despite the poor monsoon.

RBI declared in its annual report on Thursday that one needs to acknowledge the progress on effective variegation of Indian agriculture towards horticulture, livestock and fisheries and their growing share in total output of the agricultural sector. It also stated that cereals, pulses and oilseeds grown during kharif report for only 20% of total agriculture output.

According to RBI, while the level of rainfall inadequacy linked with south west monsoon has increased, the IIP figures for the month of June depict substantial recovery in industrial output.

RBI expressed concerns over the high level of consumer price inflation for agriculture workers, which is about 13%.

It also said that economic affect of the drought would not be as bad as estimated by some financial experts.

The poor rain will thrust food prices in the short term, and will also force the government to increase expenditure on subsidies and other relief steps.