Bangalore: The Reserve Bank Wednesday said it expects the economic growth in the current financial year to be around seven percent and does not see signs of a "spectacular turn-around" in the coming fiscal as well.
"Growth rate this year will be around seven percent", RBI Deputy Governor K C Chakrabarty told reporters in response to questions.
"I don't make a big difference between 6.9 percent and 7.1 percent or below seven percent. But it has come down. We are aspiring for 8.5 percent to 10 percent 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 percent growth is good by global standards. Even with this crisis the global economic growth will be around 2-3 percent or at least four percent. But as compared to that, 6.9 percent to around seven percent appears reasonable", Chakrabarty added.
PTI
First Published: Wednesday, February 22, 2012, 21:11