Montek's arguement: Why Indian economy will see a turnaround

Terming the 5 per cent economic growth in the fiscal gone by an "aberration", Planning Commission Deputy Chairman Montek Singh Ahluwalia told NDTV that the economy is back on the growth trajectory and he sees 2013-14 as the "turnaround year" for India's economy. "Absolutely no doubt that it is going to be a turnaround year...6 (per cent growth) or a little bit more is what I think. I think if we do 6 (per cent) this year people will be certain that we can do 7 (per cent) and and 8 (per cent) after that," Dr Ahluwalia told NDTV.

"Even people internationally are predicting the year is going to be a turnaround year," Dr Ahluwalia said

For the first time in more than three years, in April, the headline inflation fell below 5 per cent. "There is no doubt in my mind that inflation is softening. The most recent number was below 5 per cent, in the next few months we will see it around 5 per cent," he said.

The sharp fall in the wholesale inflation for April has raised Street expectations for the Reserve Bank of India (RBI) to cut key policy rates in its next monetary polict meeting on June 17.

The Cabinet Committee on Investments (CCI) has taken a number of steps to move the projects that were stuck, he said adding that the Finance Ministry is keeping a tab on important projects."They (CCI) have already done it, a lot more needs to be done," he said.