Economy to grow at 6.5-7 pc; no fear of deflation: PM

New Delhi, Mar 26 (PTI) India's economy would expand by
6.5 to 7 per cent in the current fiscal with revival seen in
consumer spending and there was no danger of the country
slipping into a deflationary mode, Indian Prime Minister
Manmohan Singh said Thursday.

"I don't see India is in danger of deflation (a phase
marked by persistent and all round economic downturn)... I
don't see that we are facing a deflationary trend", he said
while talking to reporters here.

Noting that government had announced stimulus packages to
boost economy reeling under the impact of global financial
meltdown, the Prime Minister said, "Consumer durable goods are
showing lot of improvement..though there are some regressive
trends."

As regards growth in the current fiscal, he said, "We
will still grow at 6.5 to 7 per cent."

The Central Statistical Organisation (CSO) in its advance
estimate of national income in February had projected a growth
rate of 7.1 per cent for the current fiscal.

Answering questions on the feasibility of a common
currency for the world, Singh said, "I have not seen any such
proposal. It is too early to talk about common currency".

Reacting to China's proposal of a common currency, US
President Barack Obama had said Wednesday, "The dollar is
extra-ordinarily strong right now...I don't believe that there
is a need for global currency". PTI ARC
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