"It (GDP growth rate) would be somewhere between 5 and 5.5 per cent. If everything worked perfectly, I would not rule out seven per cent next year (2013-14)", Ahluwalia said in an interview to PTI.
His comments came after the Central Statistical Organisation (CSO) has projected five per cent economic growth this fiscal in its advance estimates released earlier this month.
In best case scenario the growth could climb to "5.5 per cent" this fiscal, he said, adding "if there was strength in the recovery then many more signs would have been evident".
Economic growth in 2011-12 slipped to 6.2 per cent from 9.3 per cent a year ago mainly on account of global factors and subdued investor sentiments.
Gross Domestic Production (GDP) of the country has grown by 5.5 per cent in April-June quarter and further declined to 5.3 per cent in July-September quarter.
The recent industrial production data which reflects the health of mainly the manufacturing sector, has also portrayed a dismal picture. Manufacturing constitutes almost 75 per cent of the IIP.
The factory output measured in terms of Index of Industrial Production (IIP) for December, 2012, has contracted by 0.6 per cent for second straight month. IIP declined by 0.8 per cent in November 2012.