Press Esc to close
Wednesday 25 May 2016
News updated at 2:40 PM IST
Weather
Max: 34°C
Min : 22.7°C
In Bengaluru
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
Girls cover themselves during a dust storm in mathura on Monday...

Girls cover themselves during a dust storm in mathura on Monday...

Renowned sand artist Sudarsan Pattnaik creates a sand art to aware people about water scarcity...

Renowned sand artist Sudarsan Pattnaik creates a sand art to aware people about water scarcity...

English actor Sir Ian McKellen and Bollywood actor Aamir Khan share lighter moments...

English actor Sir Ian McKellen and Bollywood actor Aamir Khan share lighter moments...

A senior Army Officer presents the Sher-e-Kashmir Sword of Honour to a new recruit...

A senior Army Officer presents the Sher-e-Kashmir Sword of Honour to a new recruit...

People watching the air ambulance which crash landed at Kair village in Najafgarh area...

People watching the air ambulance which crash landed at Kair village in Najafgarh area...

Demi Moore poses for photographers as she arrives for The Vogue 100 Gala Dinner...

Demi Moore poses for photographers as she arrives for The Vogue 100 Gala Dinner...

Nuremberg and Frankfurt players jump for the ball during a German first division Bundesliga soccer..

Nuremberg and Frankfurt players jump for the ball during a German first division Bundesliga soccer..

People hang fish to dry on bamboo poles in Mumbai...

People hang fish to dry on bamboo poles in Mumbai...

A cyclist with his daughter pedals his cycle holding an umbrella...

A cyclist with his daughter pedals his cycle holding an umbrella...

An elderly vendor waits for customers of green grass during rains in Srinagar....

An elderly vendor waits for customers of green grass during rains in Srinagar....

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