Reserve Bank of India Governor Y V Reddy said this morning that the Indian economy appears to be shifting to higher levels of growth trajectory. "Lately, the economy is perhaps picking up an accelerated growth momentum with an average GDP growth at around 8% per annum during the last three years. It is equally notable that the inflation conditions have moderated to around 5%, decelerating significantly from relatively higher levels in the earlier periods," Reddy said.
Reddy was delivering a speech at the 12th international conference on "The Future of Asia" The Road to an "Asian Community" – Concepts and prospects, organised by Nihon Keizai Shimbun Inc in Tokyo today.
"The strengthening of economic activity in the recent years has been supported by persistent increase in gross domestic investment rates from 23% of GDP in 2001-02 to 30.1% 05 coupled with more efficient use of capital. Gross domestic saving rate has also improved from 26.5% to 29.1% during the same period. The saving-investment balance in India is in a desirable range thereby contributing to global stability," Reddy said.
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