Mumbai: Reserve Bank of India (RBI) expects the economy’s growth rate to bounce back above 8% once the current global economic and financial turmoil passes, deputy governor Rakesh Mohan said on Monday.
“Our overall assessment is still an 8%-plus growth is sustainable in the medium term. We can expect to come back to 8%-plus growth once this interregnum is over,” Mohan told a news conference.
The government expects the economy to grow about 7% in the fiscal year that ends on 31 March, well below rates of 9% or more in the previous three fiscal years.
Mohan said India would be cautious in moving towards fuller capital account convertibility for the rupee currency.
“We have also looked at the fuller capital account convertibility and concluded its desirable, but we need to move with caution,” he said.