The Reserve Bank of India's Annual Report for the year ended June 2011 says growth prospects for the present fiscal are relatively subdued compared with the previous year because of the increased global uncertainties, persistent inflationary pressures and higher borrowing costs. The report further says that the economy needs to brace up for a difficult year from a macroeconomic perspective. It said with weak supply response, inflation remains an important macroeconomic challenge. The Reserve Bank warned against accepting high inflation as the new normal and said this would not help serve the economy in the long term. Releasing the central bank's Annual Report RBI Deputy Governor Subir Gokarn told reporters in Mumbai that the outlook for the domestic industrial sector for this fiscal remains uncertain, with the downside risks outweighing the upside risks. However, he ruled out any possibility of hard-landing of the domestic economy which will be a possibility if the economy falls behind the trend growth of 8 percent. The report warns that if the global financial condition deteriorates, it could further lower the growth projections in the current fiscal.