A key finance ministry official today projected India's growth rate at 7-7.5 per cent in the current fiscal, lower than projected by the Reserve Bank of India (RBI) as well as the growth recorded in the first half of this fiscal.
"India, after remaining in high growth trajectory continuously for the last four years is now projected to grow between 7 and 7.5 per cent during the current financial year," Economic Affairs Secretary Ashok Chawla said at the Third India China Financial Dialogue here.
Indian economy grew at the rate of 7.8 per cent in the first half of the current fiscal compared with 9.3 per cent in the same period last fiscal.
However, growth is expected to lower much after the first half, as industrial growth turned negative in October and stood at just 2.4 per cent in November.
The RBI has estimated Indian economy to grow at 7.5-8 per cent, but it may also lower its growth forecasts.
RBI Governor D Subbarao had recently indicated that the central bank may revise down the GDP projections at its third quarterly review of the credit policy, slated for January 27.
Chawla said India has taken a number of steps to inject liquidity into the financial system, recapitalised banks and other systemically important institutions to tide over the crisis.
He identified banking sectors and capital markets as areas where the expert teams of India and China would jointly work and evolve a time-bound strategy for closer engagement.
The Economic Affairs Secretary said that both India and China have to work together to ensure that reform initiatives usher in tangible results for developing nations.
