RBI does not expect "spectacular turnaround" in GDP growth rate

BANGALORE: RBI expects the GDP growth in the current financial year to be around seven per cent and does not see signs of a "spectacular turn-around" in the coming fiscal as well.

"Growth rate this year will be around seven per cent", RBI Deputy Governor K C Chakrabarty told reporters here in response to questions.

"I don't make a big difference between 6.9 per cent and 7.1 per cent or below seven per cent. But it has come down. We are aspiring for 8.5 per cent to 10 per cent growth. It has definitely slowed down. Next year also we don't see a spectacular turn around at least that is not seen if we continue to work the way we are working", he said.

"Our major growth driver is service side. More growth from the service sector means we are transforming to knowledge economy", Chakrabarty said.

"A 6.9 per cent growth is good by global standards. Even with this crisis the global economic growth will be around 2-3 per cent or at least four per cent. But as compared to that, 6.9 per cent to around seven per cent appears reasonable", Chakrabarty added.