Domestic economy can lead India's turnaround: N Seshadri, Bank Of India

In a chat with ET Now, N Seshadri, Executive Director at Bank of India, gives his views on the GDP numbers. Excerpts:

ET Now: Everyone is speaking about how all the steps to bring down inflation has been done majorly by the RBI and that it is now the government’s turn to take it forward. Would you also agree with this?

N Seshadri: RBI has done its bit on the monetary policy front and we have a fair amount of hold on inflation. For the GDP and economy to get a big boost, there must be manufacturing and infrastructure led growth. This would largely depend on the policy issues addressed by the government.

The banking industry has had one of the slowest Q4 growth rates ever. Banking being a proxy to the whole economy, GDP numbers reflect that. Going forward, globally, there is very little possibility of exports coming to the rescue of the growth story. With inflation under control, we can definitely have a domestic economy led turnaround. This can happen only when manufacturing and infrastructure get their due share and start contributing.

In terms of interest rate, RBI can do very little about it. A lot depends upon the fiscal side and the government.