Reserve Bank of Indai Governor Bimal Jalan said on Saturday that Indian economy is likely to grow by over 6.0 per cent following supportive policy measures in the Budget and an industrial revival.
"Despite adverse developments in global economy and a severe drought, India achieved a reasonable growth of 4.4 per cent during 2002-03 and is likely to grow by over 6.0 per cent in 2003-04," Jalan said at the spring meeting of the International Monetary Fund in Washington.
Addressing the IMF committee, he said the relatively satisfactory performance of the Indian economy coincided with low inflation, strong external sector performance, record level of foreign exchange reserves and a vastly improved macroeconomic environment.
"Industrial output is showing signs of recovery and export performance is robust. India is confident that its economic slowdown is bottoming out and a revival is under way," he said.
Jalan said the current policy framework was supportive of the revival process.
"The Union Budget for 2003-04 contains several measures to facilitate the revival process and the monetary policy is accommodative of the productive activity," he said.
Jalan, who led the Indian delegation at IMF, said neighbouring countries like Bangladesh and Sri Lanka, have also been faring reasonably well.
