Indian Economy is at a Turning Point: Raghuram Rajan

New Delhi: The Indian economy is likely to improve in this financial year beginning April 1, helped by moderate inflation and better external factors, chief economic advisor to the finance ministry Raghuram Rajan said.

Addressing a press conference on the Economic Survey 2012-13, Rajan said: "India is in a difficult but not impossible situation...we are at or beyond the turning point of the economy."

"With improved sentiments, we expect the outlook to improve and growth to remain in the range of 6.1 to 6.7 percent," he said.

The annual document authored by Rajan and tabled in parliament by Finance Minister P. Chidambaram has pegged the GDP growth rate for the financial year beginning April 1, 2013, in the range of 6.1 to 6.7 percent.

Rajan said a wide range was put in the growth figure because of uncertainty prevailing in the economy. "Given the uncertainty, we are giving wider band."

He said global macro-economic situation was likely to improve this year that would help improve situation in India.

"Last year throughout we had constant worries about Europe, we had constant worries about the US. External side will not be drag this year," said Rajan, a former chief economist of the International Monetary Fund (IMF).

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