Press Esc to close
Sunday 02 August 2015
News updated at 2:47 AM IST
Weather
Max: 29.9°C
Min : 21°C
In Bengaluru
Generally 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
Players in action during a Pro Kabaddi League match between Daband Delhi (Red) and U Mumbai...

Players in action during a Pro Kabaddi League match between Daband Delhi (Red) and U Mumbai...

Models during the India Couture Week 2015 in New Delhi on Saturday...

Models during the India Couture Week 2015 in New Delhi on Saturday...

People pay homage at the grave of former president APJ Abdul Kalam in Rameswaram...

People pay homage at the grave of former president APJ Abdul Kalam in Rameswaram...

Amitabh Bachchan and Kangna Ranaut during a commercial shoot...

Amitabh Bachchan and Kangna Ranaut during a commercial shoot...

Damaged houses in Gamru village after massive landslides in Dharmsala...

Damaged houses in Gamru village after massive landslides in Dharmsala...

Villagers wade through a flood waters at Keshpur village in West Midnapore district of West Bengal.

Villagers wade through a flood waters at Keshpur village in West Midnapore district of West Bengal.

Student Police Cadets (SPC) posing the photo in front of Mahatma Gandhi statue...

Student Police Cadets (SPC) posing the photo in front of Mahatma Gandhi statue...

A kid gets ready for the performance during an event of 'Save the Tiger' campaign at Lalbagh...

A kid gets ready for the performance during an event of 'Save the Tiger' campaign at Lalbagh...

Save Tigers Environment awareness programme...

Save Tigers Environment awareness programme...

On the eve of Dogs Friendship day proud owners'of the pets gathered with their dogs...

On the eve of Dogs Friendship day proud owners'of the pets gathered with their dogs...

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