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India's GDP growth seen around 6-6.5 per cent

Reserve Bank of India deputy governor Y V Reddy said on Tuesday he expected the country's gross domestic product growth this year to be in the 6-6.5 per cent range and economic growth would hinge on monsoon rains.

"There is a reasonable expectation that GDP growth would be in the range that has been mentioned in the monetary policy, that is, 6-6.5 per cent," Reddy told reporters.

"Whether it (GDP growth) will be on the higher end or lower end of the range we have to see. We have to wait for the monsoon situation. The real clincher would be the monsoon," the deputy governor said.

Reddy said he expected the country's external sector to be comfortable despite concerns over rising global oil prices and the economic slowdown in the United States.

"Compared to other countries, the impact is likely to be moderate. We are still very confident that the external sector parameters would be as indicated in the monetary policy," he said. "The current account deficit will certainly be less than two percent."

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