The economy is likely to expand by six per cent next year as the decline in growth seems to have ended, Prime Minister's Economic Advisory Council Chairman C Rangarajan today said.
"In 2007-08, India's growth was nine per cent. But from that level, the growth came down. There are enough indicators that the decline in growth has ended. The growth will be more. Next year, the growth is expected to be at six per cent," he told reporters here.
He was speaking after releasing the book "India Uninc" penned by professor R Vaidyanathan of IIM Bangalore.
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He said India's balance of payments has been reducing in the current year. "This financial year, the current account deficit is expected to be USD 45 billion. Last year it was USD 88 billion. The value of Indian rupee against dollar is expected to remain same for some time."
He said compared to other western countries, India's growth has been more.
"Western countries are currently growing only at two per cent. But India's growth this year is expected to be five per cent," he said.
Expressing confidence in the Indian growth story, Rangarajan said there are enough indicators that the decline in growth has ended.
"In 2007-08, India's growth was nine per cent. But from that level, the growth came down. There are enough indicators that the decline in growth has ended. The growth will be more. Next year, the growth is expected to be at six per cent," he said.
He said the Indian economy is resilient and more competitive.
"In fact, all calculations indicate if only we grow at 9-10 per cent per annum, by 2025 India's per capita GDP will grow from 1,600 USD which is now, to USD 8,000 to 10,000," he said.
Besides, he said, the imports of gold in the country has come down compared to previous year.
"In India, gold is imported. We are not manufacturing. That is why, in the last two years, the import of gold has been more. But, that has come down this year. The reasons are because of the initiatives taken by the Government and Reserve Bank," he said.
Asked about RBI appealing to replace currency notes with those printed before 2005, he said, "the safety elements in currencies before 2005 was less. To reduce counterfeit, RBI has asked to replace the old currency notes with new one. That is the objective.
