Economy to grow 6.5-7%, says PM

NEW DELHI: India���s economy would expand by 6.5 to 7% in the current fiscal with revival seen in consumer spending and there was no danger of the country slipping into a deflationary mode, Prime Minister Manmohan Singh said here on Thursday.

���I don���t see India is in danger of deflation. I don���t see that we are facing a deflationary trend,��� he said while talking to reporters here. Noting that government had announced stimulus packages to boost economy reeling under the impact of global financial meltdown, the Prime Minister said, ���Consumer durable goods are showing lot of improvement, though there are some regressive trends.���

As regards growth in the current fiscal, he said, ���We will still grow at 6.5 to 7%.��� The Central Statistical Organisation (CSO) in its advance estimate of national income in February had projected a growth rate of 7.1% for the current fiscal.

Answering questions on the feasibility of a common currency for the world, Mr Singh said, ���I have not seen any such proposal. It is too early to talk about common currency.���

Reacting to China���s proposal of a common currency, US President Barack Obama had said on Wednesday, ���The dollar is extra-ordinarily strong right now. I don���t believe that there is a need for global currency.���