Press Esc to close
Monday 24 July 2017
News updated at 8:04 PM IST

Growth rate of 5 to 6 per cent not sufficient: RBI Gov

New Delhi, Mar 3, 2013 (PTI): 0:44 IST

Says high inflation, low investments worrying factors

Reserve Bank of India Governor D Subbarao
Reserve Bank of India Governor D Subbarao said on Sunday that a growth rate of 5 to 6 per cent is not sufficient for the economy, which has the potential to grow at double digit rate provided some issues are addressed.

At an IIT Kanpur alumni meet, he said: “We are quite happy that India is growing at 5-6 per cent, but I must tell you that is not sufficient. That is much less than our potential, unless we grow at 9-10 per cent year-on- year for about 10 years, we cannot pull millions of people out of poverty.”

Subbarao is an alumnus of IIT Kanpur.

Citing past examples, he said Indian economy grew 9.5 per cent on an average three years before the global crisis of 2008.

“But today, the story has reversed, growth is moderating. This year (2012-13) we are going to grow at 5 per cent, which is the lowest in a decade. Inflation is still high and stubborn. Balance of payments is under stress. Decline in investments is a worry. Investments not taking place today, that’s a worry,” he said.

According to him, India’s growth story is still credible. “If we do the right things, we can get back on the track of the double digit growth,” he said.

In a lighter vein, Subbarao said that the Eurozone crisis is likely to be over with the expiry of his term in September this year. “People ask me when is this global financial crisis that is reeling for the last five years, will be over. I was appointed Governor on September 5, 2008 and two weeks later the Lehman Brothers collapsed ... so there was an association with Subbarao becoming the governor and the world economic crisis.”

He then referred to the renewal of his term in August 2011 by the government for two years. “Two days after that, Eurozone crisis happened. So again it established a co-relation. So, the Eurozone crisis and the global crisis will be over when my term comes to an end,” he said.

Go to Top

Photo Gallery
National Disaster Response Force (NDRF) men rescuing a villager from a flood-hit area in Morbi...

National Disaster Response Force (NDRF) men rescuing a villager from a flood-hit area in Morbi...

A Hoolock Gibbon in an enclosdure inside the Delhi zoo...

A Hoolock Gibbon in an enclosdure inside the Delhi zoo...

President Pranab Mukherjee gestures after his speech during his farewell ceremony...

President Pranab Mukherjee gestures after his speech during his farewell ceremony...

Members of All India Porters Union Kargil War stage a protest against the government...

Members of All India Porters Union Kargil War stage a protest against the government...

A view of Parliament after heavy rains in New Delhi on Sunday...

A view of Parliament after heavy rains in New Delhi on Sunday...

People wading through a water logged street after rains in Kolkata...

People wading through a water logged street after rains in Kolkata...

Villagers of Thiba gather to look at the broken barrage after it was broken on by heavy...

Villagers of Thiba gather to look at the broken barrage after it was broken on by heavy...

Kanwariyas carrying holy water of river Ganga from Gadmukteshwar to offer Lord Shiva...

Kanwariyas carrying holy water of river Ganga from Gadmukteshwar to offer Lord Shiva...

MiG-35 in action at MAKS 2017 airshow in Zhukovsky, Russia on Sunday. Russia is keen...

MiG-35 in action at MAKS 2017 airshow in Zhukovsky, Russia on Sunday. Russia is keen...

Bollywood actress Sunny Leon at an event in Mumbai ...

Bollywood actress Sunny Leon at an event in Mumbai ...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.