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Indian economy likely to grow nearly 7% in FY10: SBI

Last Updated: Monday, October 26, 2009 - 21:19

Mumbai: SBI Chairman O P Bhatt on Monday sounded
much optimistic on economic growth and projected nearly seven
per cent expansion this fiscal, on a day when RBI professional
forecasters revised down the forecast to six percent.

"Economic activity will gather steam and momentum. We may
not grow at nine percent but at (about) seven per cent,"
Bhatt said at an event here. Observing that the country was
witnessing a revival in economic activity, he said growth
would be more widespread and sustainable.

India`s economic activity would gather momentum, but the
country may not be able to meet its aspiration of growing at
nine percent, he said.

"The IPO market has picked up. This means that they
(companies) will ask banks for working capital loans and this
is reviving economic activity," Bhatt said at an event here.

Demand for auto and infrastructure projects has also
increased, he said.

The comments came at a time when RBI said there are
upside as well as downward risks to the growth.

While positive side is that industrial production is
picking up, overall business confidence is showing upturn,
stock markets are strong, downward risks are that there is
deceleration in private consumption demand, decline in
corporate sales in the first quarter, impact of weak monsoon
and floods, lower credit growth and contraction in exports,
the central bank said.

Bureau Report

First Published: Monday, October 26, 2009 - 21:19
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