The government today said that Indian economy is likely to grow between 6.1% to 6.7% in 2013-14 as the downturn is more or less over and the economy is looking up.

Speaking to reporters in New Delhi , chief economic adviser in the finance ministry, Raghuram Rajan however said due to a combination of both external and domestic factors, the economy decelerated growing at 6.2% and an estimated 5% in 2011-12 and 2012-13.

Mr Rajan said, there is a need to reduce fiscal and current account deficits. Mr Rajan said the country is in a difficult situation.

He also admitted that consumer price inflation is also worrisome. Mr Rajan, however, said India likely to meet deficit aim to slow inflation. He said global economy likely to improve in 2013. Mr Rajan said

the country needs monetary and supply side measures to curb inflation and to remove bottlenecks to investments. Mr Rajan said the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economy’s outlook for 2013-14.

He said, the slowdown in the rate of growth of services sector in 2011-12 at 8.2%, and particularly in 2012-13 to 6.6 percent from the double-digit growth of the previous six years, contributed significantly to slowdown in the overall growth of the economy. Mr Rajan said some slowdown could also be attributed to the lower growth in agriculture and industrial sectors.