6% growth possible for India: Raghuram Rajan

India is watching the external developments of recent weeks and its impact on the economy, chief economic advisor Raghuram G Rajan said in Singapore today even as he expressed optimism of the economy growing by over 6% during the current fiscal.

India is watching the external developments of recent weeks and its impact on the economy, chief economic advisor Raghuram G Rajan said in Singapore on Saturday even as he expressed optimism of the economy growing by over 6% during the current fiscal.

HT Image

"The external environment has deteriorated somewhat," he said.

"Yesterday's US labour numbers came in very weak compared to expectations, the tensions in Korean peninsula which is creating problems [and in] Europe you have the Cyprus issues and some concern about some of the banking systems in some of the peripheral countries because of what happened in Cyprus.

I don't think we have seen the end of that," he said.

But Rajan said he would stand by the 6.1-6.7% Indian economic projection for this year.

"This year, we made a forecast of 6.1 and 6.7 and I still stand by that. I am not going to drop on that but what we have seen last few weeks, indicators both in India and outside and we will have to be watching carefully but I don't see any reasons to change our forecast."