With the manufacturing sector and exports growing at an impressive pace, and inflation remaining under control, India's economy was witnessing a turnaround, Finance Minister Jaswant Singh said on Tuesday.

"By the grace of god, so far rains are encouraging, the inflation is in single figure and the forex reserves are buoyant," he told the 19th All India Conference of Chief Commissioners and Director Generals of Income-Tax and Excise and Customs.

Singh said he expected a three-figure foreign exchange reserves in the "none-too-distant-future."

He said while the manufacturing and services sector was growing satisfactorily exports were growing at 19 per cent, adding, this buoyancy was in sharp contrast to last year.

The minister said last year, there was unprecedented drought in some parts of the country besides the Gulf War and the stand-off with neighbouring Pakistan.

"The Gulf War is over, the drought is over. Our granaries are full," he said adding there wasn't a single case of starvation death.