Addressing a press conference on the Economic Survey 2012-13, Mr. Rajan said: "India is in a difficult but not impossible situation ... we are at or beyond the turning point of the economy."
"With improved sentiments, we expect the outlook to improve and growth to remain in the range of 6.1 to 6.7 percent," he said.
The annual document authored by Mr. Rajan and tabled in Parliament by Finance Minister P. Chidambaram has pegged the GDP growth rate for the financial year beginning April 1, 2013, in the range of 6.1 to 6.7 percent.
Mr. Rajan said a wide range was put in the growth figure because of uncertainty prevailing in the economy. "Given the uncertainty, we are giving wider band."
He said global macro-economic situation was likely to improve this year that would help improve situation in India.
"Last year throughout we had constant worries about Europe, we had constant worries about the US. External side will not be drag this year," said Mr. Rajan, a former chief economist of the International Monetary Fund (IMF).