GDP growth rate--- 7 to 7.5%

The global financial crisis is expected to hurt the Indian economy more than previously anticipated, with Prime Minister Manmohan Singh on Sunday projecting GDP growth to slow down to 7-7.5% next fiscal. 

Although the government and the Reserve Bank battle contraction in credit growth, he underlined the facts that fundamentals of the economy were strong and banks were safe, and promised accelerated efforts to prop up growth. 

"Due to the current international economic and financial situation, our growth rate may come down somewhat next year. However, we still hope to achieve a growth rate of 7 to 7.5% next year," he said.

Reserve Bank of India last month said the $1.2 trillion economy may grow at 7.5% this fiscal as opposed to 9% in 2007-08. The rate in 2008-09 would be the weakest since 2005. 

"The fundamentals of our economy are strong. Our banking system and financial institutions are well capitalized and secure," PM stressed, while pointing to the high-level committee he had constituted to monitor the situation. 

"Our domestic savings rate is 35% of our GDP and our investment rate is 37% of our GDP," he said.