Monday 21 April 2014
News updated at 1:04 PM IST
Weather
Max: 35.5°C
Min : 23.4°C
In Bangalore
Partially cloudy

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
Spanish bullfighter Curro Diaz performs with a Gavira ranch fighting bull during a bullfight ...

Spanish bullfighter Curro Diaz performs with a Gavira ranch fighting bull during a bullfight ...

Dressed for the occasion, Michelle White poses for photographs as she makes her way along ...

Dressed for the occasion, Michelle White poses for photographs as she makes her way along ...

Dressed for the occasion, a dance group from Rolling Meadows High School in Rolling Meadows ...

Dressed for the occasion, a dance group from Rolling Meadows High School in Rolling Meadows ...

Dressed for the occasion, Ella Morton, right, and others pose for photographs along New York's ...

Dressed for the occasion, Ella Morton, right, and others pose for photographs along New York's ...

Trent Morrow of Sydney, Australia, also know as “Marathon Man” laughs as Andrea Olivo ...

Trent Morrow of Sydney, Australia, also know as “Marathon Man” laughs as Andrea Olivo ...

Ron McCracken of Dallas pays his respects at a makeshift memorial honoring to the victims ...

Ron McCracken of Dallas pays his respects at a makeshift memorial honoring to the victims ...

A relative of a passenger aboard the sunken ferry Sewol prays as she waita for her missing loved ...

A relative of a passenger aboard the sunken ferry Sewol prays as she waita for her missing loved ...

In this April 12, 2014 photo, a man walks past a building that collapsed due to the heavy ...

In this April 12, 2014 photo, a man walks past a building that collapsed due to the heavy ...

In this April 12, 2014 photo, children play soccer near a colonial building in Havana, Cuba.

In this April 12, 2014 photo, children play soccer near a colonial building in Havana, Cuba.

Relatives of passengers aboard the sunken ferry Sewol wait for news on their missing loved ones ...

Relatives of passengers aboard the sunken ferry Sewol wait for news on their missing loved ones ...

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