"In Economic Survey we had forecast (growth rate of 7-7.5 per cent) and I think broadly we are going to stick to that. As I said there is going to be Brexit and offsetting factors like good monsoons, let's see how it works out. At the moment we are not revising the forecast (of GDP growth).
CAD is the net difference between outflows and inflows of foreign currencies.
"It (Monsoon) is spreading reasonably well I think. In July we are expecting really good rains. That's when the all the planting happens on the whole hoping for good agricultural karif production with the monsoon," he further said.
He said though the price of gold is surging, it may not have an impact on the overall CAD as the yellow metal imports constitutes less than half of the oil import bill resulting a in net positive affect.
Subramanian was in the city to deliver a lecture at CR Rao Advanced Institute of Mathematics, Statistics and Computer Science at University of Hyderabad.
Earlier in an interactive session, he said Brexit may slow down the word economy and it may impact India also.
"It is a landmark development in many ways. It is going to have ripples around the world. People are very anxiously looking at whether in the US election also something similar might happen.
On bad debts, Subramanian said in China the amount of
loans that the banks have lend to firms or corporates is 165 per cent of its GDP whereas in India it is only 35 per cent.
"It is not a challenge that cannot be managed. RBI and the government is working together to make sure this does not become a time bomb and also does not impact on the economy," he said.
In order to tame food inflation, the government is taking steps to "dramatically" increase pulses production in the country.
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