SBI Chairman O P Bhatt today sounded much optimistic on economic growth and projected seven per cent expansion this fiscal, on a day when RBI professional forecasters revised down the forecast to six per cent.

"Economic activity will gather steam and momentum. We may not grow at nine per cent but at seven per cent," Bhatt said at an event here. Observing that the country was witnessing a revival in economic activity, he said growth would be more widespread and sustainable

India's economic activity would gather momentum, but the country may not be able to meet its aspiration of growing at nine per cent, he said.

"The IPO market has picked up. This means that they (companies) will ask banks for working capital loans and this is reviving economic activity," Bhatt said at an event here.

Demand for auto and infrastructure projects has also increased, he said.

The comments came at a time when RBI said there are upside as well as downward risks to the growth.

While positive side is that industrial production is picking up, overall business confidence is showing upturn, stock markets are strong, downward risks are that there is deceleration in private consumption demand, decline in corporate sales in the first quarter, impact of weak monsoon and floods, lower credit growth and contraction in exports, the central bank said.