Inaugurating a seminar on the mid-term review of the economy organised by the Associated Chambers of Commerce & Industry (Assocham) here on Monday, Jalan said: "In crude statistics, we are better off now. The only difference between now and then is how we view the future. It is important for us to take a realistic view of the future, which is not one of despair but of opportunities.".

Elaborating his point, the RBI chief said that as opposed to the current year, in 1994-95 and 1995-96, inflation, fiscal deficit, and foreign debt were higher, forex reserves lower, and money supply tighter, yet the economy grew at a high rate. Although the parameters have improved and forex reserves are high, industry's confidence seems to be lacking.

He added that the key to industrialrevival now was pick-up in investments, especially in the infrastructure sector. "We need industrial revival not only for economic growth, but also to increase revenue. We need investments, especially in infrastructure. Once that gets going, the economy will pick up," he said.

Jalan expressed confidence that the fiscal deficit would be restricted to the targeted 5.6 per cent of the gross domestic product (GDP). There was no reason to doubt the government's commitment on that count, he added.

The RBI governor said that the sources of comparative advantage have shifted in favour of India, and "time is now ripe to use our skills and adaptability to change and shape our destinies, without looking back on the difficult times we have been through".