Kolkata: Despite the economic slowdown, the Indian economy is likely to grow 7-8 percent in 2009-10, ICICI Bank chief executive K.V. Kamath said here Saturday.

"The quarter-on-quarter growth should now start looking good. We will clearly grow between 7-8 percent in 2009-10," Kamath told reporters on the sidelines of the annual convocation of the Indian Institute of Management-Calcutta.

India has finally moved past the economic challenges and rural India, the knowledge industry and the majority of the corporate sector has picked up, he said, adding that the "credit off-take is also good".

However, "there are certain sections of the business, which are still in the pain - real estate, textile and oil and gas business," Kamath said.

He also ruled out any immediate slashing of interest rates by the bank.

Asked whether the country would plunge into deflation, Kamath said: "I don't think so. For going to deflationary state there should be collapse of demand. There is no collapse of demand."

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Source : IANS