The Reserve Bank of India on Friday said the economy would grow by 5 to 5.5 per cent in the current fiscal, pinning its hopes on good farm output and improved exports.
“We have no reason to dispute the growth rate projected by the government at 5 to 5.5 per cent,” RBI Governor Raghuram Rajan said after a board meeting here.
He based his optimism on expectations of a good kharif crop, improvement in exports and core sector performance data. He also said that the central bank is working on the contours of the scheme that will provide cheap loans to buyers of consumer goods. “I just want to emphasise that discussion is taking place... Something will be announced as and when the scheme will be put together,” he said.
While replying to questions on initiatives taken by the RBI to combat the rupee depreciation, Rajan said, “We have got $5.6 billion through swap arrangements.”