Indian economy at a turning point: Rajan

The performance of the Indian economy is likely to improve in the next fiscal, aided by a softening inflation and better external factors, chief economic advisor to the finance ministry Raghuram Rajan said on Wednesday.

Economic Survey for 2012-13 has pegged the economic growth in FY14 at 6.1-6.7 per cent and has suggested that economic reforms should be accelerated to push the growth higher.

The forecast comes against the backdrop of a deceleration in growth in the previous two fiscals. Indian economy is estimated to grow around 5 per cent in 2012-13.

The Economic Survey, which has been authored by Chief Economic Advisor Raghuram Rajan, was tabled in Parliament by Finance Minister P. Chidambaram on Wednesday, a day ahead of the presentation of the Union Budget for 2013-14.

Addressing a press conference on the Economic Survey 2012-13, Rajan said: "India is in a difficult but not impossible situation...we are at or beyond the turning point of the economy."

Rajan said a wide range was put in the growth figure because of uncertainty prevailing in the economy. "Given the uncertainty, we are giving wider band."

He said global macro-economic situation was likely to improve this year that would help improve situation in India.