The government expects India's gross domestic product (GDP) growth to pick pace in the next fiscal year, although growth this year will be "slightly higher" than 7%, chief economic adviser Kaushik Basu said on Tuesday.
In the mid-year analysis tabled in Parliament in December, the government had projected that India's GDP would grow by 7.5%, a sharp moderation compared to the 9% growth forecast during the presentation of the Union Budget in February.
"We expect the growth next year to be higher than the growth this year, not higher by a large measure... but we should see an improvement in 2012-13," Basu said.
On the expected growth this year, Basu commented: "We had said it will be 7.5% with a small band around it. I am afraid we will be at the bottom end of the band..."
"The growth rate will be less than 7.5% for sure, may be just a little above 7%," he told mediapersons here.
The government also revised the economic growth rate for 2010-11 financial year marginally down to 8.4% from the earlier estimate of 8.5%.
The finance ministry has developed a comparative rating index of sovereigns (CRIS), which shows that in relative terms India has become a better investment destination for global investors by 5.06%.