Beijing: India's economy needs external capital flow to grow at nine per cent and touch $five trillion in the next five years, C Venkat Nageswar, Deputy Managing Director, International Banking Group of the SBI said on Monday.
Nageswar is currently visiting China to interact with various Chinese regulators and officials of Asian Infrastructure Investment Bank, the New Development Bank of the BRICS countries to discuss cooperation with the State Bank of India.
"We are looking at seven per cent growth for the current financial year for the Indian economy. We are expecting inflation to be very benign. Our estimate is there is every possibility it will touch $five trillion in the next five years," Nageswar told the media here.
"It is doable. We need to grow at nine per cent to achieve those numbers. Tt is possible and we are confident," he said.
"But in order to grow at nine per cent India needs capital. If we are looking for five trillion-dollar growth in the next five years, there is going to be deficit in the capital requirements. We need external capital to come," he said adding that recently the Reserve Bank of India has relaxed regulations for the banks to attract more capital.
He said there was a good amount of liquidity globally.
"Here is the only real economy giving good interests rates. Therefore, we are looking for liquidity to flow into India," he said.
Outlining the reasons for slowdown in the economy, he said economies across the world have slowed down.