Reserve Bank of India (RBI) Governor, D Subbarao expressed satisfaction over recovery of economy from the adverse impact of global slowdown and hoped that India will soon show outstanding economic performance with growth rate of 9 per cent.

Mr. Subbarao dismissed apprehensions of deflation, the aggregate reduction in demand, in the country saying that inflation rate is declining due to low industrial output.

He added, "It is important for the central bank to communicate the message that this is not a structural deflation and that what we are seeing is purely statistical in its nature,"

However, Mr. Subbarao acknowledged that inflation in negative zone is a cause of concern for the apex bank. Deflation is very harmful for economic growth as it prevents manufacturers to produce more goods in view of very low demand in the system.

RBI Chief, while terming his priorities in an interaction with the London-based Central Banking Publications, said, "For me, the single most important objective is returning the economy to a high growth path."

He added that high growth rate is meaningless until it covers socially deprived people of the country.