New Delhi: India’s economy would expand by 6.5 to 7% in the current fiscal with revival seen in consumer spending and there was no danger of the country slipping into a deflationary mode, Prime Minister Manmohan Singh said on Thursday.
“I don’t see India is in danger of deflation (a phase marked by persistent and all round economic downturn)... I don’t see that we are facing a deflationary trend”, he said while talking to reporters here.
Noting that government had announced stimulus packages to boost economy reeling under the impact of global financial meltdown, the Prime Minister said, “Consumer durable goods are showing lot of improvement.. though there are some regressive trends.”
As regards growth in the current fiscal, he said, “We will still grow at 6.5 to 7%.”
The Central Statistical Organisation (CSO) in its advance estimate of national income in February had projected a growth rate of 7.1% for the current fiscal.
Answering questions on the feasibility of a common currency for the world, Singh said, “I have not seen any such proposal. It is too early to talk about common currency”.
Reacting to China’s proposal of a common currency, US President Barack Obama had said on Wednesday, “The dollar is extra-ordinarily strong right now...I don’t believe that there is a need for global currency”.