Economy to grow at 5.5% this year, says RBI governor

India is hoping to achieve 5.5 percent, or little more, growth rate this year, said Reserve Bank of India (RBI) Governor Raghuram Rajan .

"Next year, we will go into sixes and hopefully sevens the year after," he said while addressing students of Indian Business School (ISB) in Hyderabad on Thursday.

Rajan said without thinking of major reforms, the country can put the economy back on track to a reasonable level but reforms will be key to sustain the growth or to take it to a higher level.

He said the government is focusing on improving the framework of doing business. Rajan stressed the need to make easy for business to grow in terms of access to finance, regulations, and skilled labour.

"The government is working in all these areas. I don't see why we can't overtime reach double digit given our level of development," he added.

To a question, Rajan said Prime Minister Narendra Modi has an ambitious agenda for India. "The level of expectations is very high. We have to match it," he averred.