Press Esc to close
Wednesday 27 May 2015
News updated at 1:15 PM IST
Weather
Max: 33°C
Min : 22.3°C
In Bengaluru
Sunny day

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

New Delhi, Mar 3, 2013 (PTI):

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
An Indian boy swims in a water body on a hot summer day in New Delhi...

An Indian boy swims in a water body on a hot summer day in New Delhi...

Damaged pickup van and truck after an accident at National Highway in South Dinajpur in West Bengal.

Damaged pickup van and truck after an accident at National Highway in South Dinajpur in West Bengal.

A leopard at Mahatma Gandhi Zoo in Solapur, Maharashtra on Tuesday...

A leopard at Mahatma Gandhi Zoo in Solapur, Maharashtra on Tuesday...

German Defence Minister Ursula von der Leyen inspects a guard of honour at the Indian...

German Defence Minister Ursula von der Leyen inspects a guard of honour at the Indian...

Army personnel in action during an encounter with militants near Line of Control (LoC)...

Army personnel in action during an encounter with militants near Line of Control (LoC)...

Railway workers using the cimex eradicator to cleaning bedbugs in side of train at City...

Railway workers using the cimex eradicator to cleaning bedbugs in side of train at City...

Gujjar community people during their ongoing agitation or reservation at the railway tracks...

Gujjar community people during their ongoing agitation or reservation at the railway tracks...

New age Mahindra 'XUV 500' launch in Mumbai...

New age Mahindra 'XUV 500' launch in Mumbai...

Narendra Modi returns after delivering a speech during the launch of a special television channel...

Narendra Modi returns after delivering a speech during the launch of a special television channel...

National Congress party holds a cut out of Prime Minister Narendra Modi during a protest...

National Congress party holds a cut out of Prime Minister Narendra Modi during a protest...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523