Mayaram says GDP growth may touch 5.9 % this fiscal

A confident Arvind Mayaram on Friday said that growth rate this fiscal will be in range of 5.5-5-9 per cent exceeding Standard and Poor's (S&P) estimate of 5.5 per cent. His comments came on the same day when rating agency S&P raised India's outlook to stable from negative after two years while retaining the 'BBB-'rating. S&P said the rating could be raised if the economy reverts to a real per capita GDP trend growth of 5.5 per cent per year.

"We are very confident that this (GDP growth) will not only be 5.5 per cent, it will be higher than 5.5 per cent. ... There is a case for upwards revision of the credit rating. As we have been stating in the past, we believe that the growth this year should be in the region of 5.5-5.9 per cent and therefore there will be a positive review within the course of year," the finance secretary said.

Mayaram added the government is satisfied that S&P has acknowledged the steps that the Centre has taken to improve the economy and especially bring the investment climate back and therefore the growth is cycle back.