Rangarajan expects economy to grow 6.4% this fiscal

Rangarajan expects economy to grow 6.4% this fiscalC. Rangarajan, the head of the Prime Minister's Economic Advisory Council has said indicated that the worst might be over for the Indian economy and said that he expects the economy to record a growth of 6.4 per cent in the current financial year.

While releasing a report from the Prime Minister's Economic Advisory Council on the state of the economy in the current financial year, he said that the gross domestic product is expected to grow at the rate of 6.4 per cent this year.

"I believe we have reached the bottom, the economy will now continue to grow at a faster rate. The very high level of investment rate that we have even now gives us the hope that if we take action for speedy implementation of projects we can achieve the higher rate of growth quickly even in the short term," Rangarajan said.

Experts say that the laggard regulatory framework has delayed many projects and have discouraged some investors from investing in Asia's third largest economy. Prime Minister Manmohan Singh has constituted the cabinet committee on investment (CCI) to speed the process of approval for large scale projects in the country. The council has cleared several projects worth billions of dollars.