India has considerable scope for monetary easing over the next six to 12 months and an aggressive RBI policy may be necessary if the global economic turmoil continues, the finance ministry said on Tuesday.In its mid-year review, the ministry said the economy was likely to grow between 7 and 8 per cent in the fiscal year which ends in March but the challenge now was to get the right policy mix. "Having run tight monetary policy during H1 2008/09, there is considerable scope for monetary policy easing over the next six to 12 months to offset the global increase in demand for money that is being transmitted to India," the report said. The Indian economy expanded an annual 7.6 per cent in the September quarter, but analysts expect growth to skid to 7 per cent or below for the entire 2008/09 fiscal year as the global downturn and sluggish domestic demand hit economic activity.
