NEW DELHI: Indian economy may grow by 6-6.5% during the present financial year, said Planning Commission Deputy Chairman Montek Singh Ahluwalia. He also said that it would be taking mmimum two years to get back to 8% growth trajectory.
Ahluwalia said, “Growth rate is going to be lower, in the range of 6 to 6.5 percent... If we grow at 6.5 percent, it will be a good performance. Our natural growth rate is 8 percent. But it will take at least two years to reverse to that growth path.”
India's gross domestic product growth fell to nine-year low of 5.3% in the quarter ended March 31, 2012.
While giving reaction to the monetary policy announced by the Reserve Bank of India, he also stated that RBI move displayed that inflation still continues to cause worry.
Core inflation was seen at 7.25% during June, according to the recent available data.