India's central bank has retained its growth projection for the country's economy at 6 per cent for the current fiscal but significantly raised its expectations on the annual inflation rate to 6.5 per cent by the end of March.

"The baseline projection for gross domestic product (GDP) growth for 2009-10 is placed at 6 per cent with an upside bias," Reserve Bank of India (RBI) Governor D Subbarao said while reviewing the monetary policy for this fiscal.