The process of Indian economy's recovery has started and the economy would enjoy a growth rate of 6 per cent or higher in the second half current financial year, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

Ahluwalia said that the higher growth would be driven by the government's current initiatives, such as policy changes to attract foreign investors.

Speaking on the topic, he said, "The first half of FY'13 is expected to grow at 5.5 per cent which will further improve during second half of FY'13 to 6 per cent or higher, driven by the current initiatives that the government is taking."

He further said that the gross domestic product growth rate would reach 9 per cent by the end of the 12th Five Year Plan, which would deliver an average growth rate of 8.2 per cent for the entire plan.

The International Monetary Fund (IMF) recently pegged a growth rate of just 4.9 per cent for the Indian economy. But Ahluwalia clarified that the growth forecasts by IMF were based on the market price model, while India's estimates for gross domestic product (GDP) growth were based on constant prices at factor cost.

He pointed out the fact that the slowdown in the Indian economy wasn't only due to global slowdown but also due to several domestic issues, such as problems in implementation of new policies. He added that the government's recent initiatives, such as opening of multi-retail and aviation sectors to foreign investors, would boost the economic growth.

Ahluwalia also said that it was high time for global credit rating agencies to take Indian economy off the negative watch list.