New Delhi: Chief Economic Adviser Raghuram Rajan Thursday said economic growth seems to be stabilising and the efforts should be made to strengthen the recovery process.
"Hopefully, economic growth is stabilising. Certainly every move that government is trying to make (will) help to strengthen growth," Rajan told reporters here.
On sudden spurt in industrial growth to 8.2 percent in October, he said, "we should not be overtly influenced by one number... We should take it as part of pattern".
The industrial production growth rate bounced back to a 16-month high of 8.2 percent in October on good performance of the capital goods, manufacturing, indicating sudden recovery in the economy.
The growth in the domestic economy will be influenced by developments in the US and the Eurozone countries, Rajan said, adding that there is a need to tap into domestic sources of growth to drive the economy.
"Clearly India will be influenced by growth constraints in Europe. After all our exports are part of the production. So If exports are declining as it has been recently, it will obviously going to have influence on the economy," he said.
India's exports in November contracted 4.17 percent year-on-year, for the seventh month in a row, to USD 22.2 billion, due to slowdown in demand in the US and European markets.
India's economic growth has declined to 5.4 percent in the first half of the current fiscal, from 7.3 percent in the corresponding period a year ago. The GDP growth in the 2011-12 fiscal was at a nine-year low of 6.5 percent.