Speaking on the sidelines of the Economic Times Global Business Summit, Sinha said that a favourable rainy season could add between 0.5 and 1 percentage point to growth in Asia's third-largest economy.
Speaking about capital requirements of public sector banks so that they meet Basel III global risk norms, which kick in from March 2019, Minister of State for Finance Jayant Sinha said that the government will fully support it.
"We are working very closely with RBI and banks to ensure all of our PSU banks meet their capital adequacy fully compliant with RBI and Basel III requirements. We are fully there to support our banks," he said.
Public sector banks need Rs 1.80 lakh crore to meet Basel III norms. While the government will provide Rs 70,000 crore, the remaining Rs 1.1 lakh crore will have to be raised by banks.
As per the capital infusion road map, PSU banks will get Rs 25,000 crore this fiscal and as well as the next fiscal and Rs 10,000 crore each in 2017-18 and 2018-19.
Out of Rs 25,000 crore set for the current fiscal, the government has infused about Rs 20,088 crore in 13 public sector banks.
On the revision of GDP numbers, Sinha said it is a fairly routine process and reset as better estimates come in.
"As previous years' GDP numbers have also been revised and brought down... it is going to make a difference to current year's numbers as well," he said.
Earlier this week, the government has marginally revised downward the economic growth for 2014-15 to 7.2 per cent, from the earlier estimate of 7.3 per cent, after factoring in the latest data on agriculture and industrial production.
"We should be able to achieve the 8 per cent mark next year if we have a normal monsoon. We should see it adding 0.5-1 per cent to GDP growth... when you have a deficient rainfall for two years, obviously that is going to be a drag on the economy and that's why we couldn't achieve the 8 per cent growth target," he explained.
As the legacy problems diminish, the economy will gather momentum, he hoped.