ID :
30250
Fri, 11/14/2008 - 17:27
Auther :
Shortlink :
http://m.oananews.org//node/30250
The shortlink copeid
India can weather crisis and return to decent growth: F.M.
On Board PM's Special Aircraft, Nov 14 (PTI) Finance Minister (F.M.) P. Chidambaram Friday said the current global economic downturn will impact India to some extent on growth, exports and currency inflows but expressed confidence that the country will still return a "decent growth".
"We can't measure the impact. We have said we will be indirectly impacted. There will be impact to some extent on our growth, our exports and it will also impact the currency flows, which it has already.
"But we are confident that given the underlying strengths of Indian economy we can weather the crisis and still return a decent growth in 2008-09. Even the International Monetary Fund (I.M.F.) last week's assessment places India's growth rate in current fiscal at 7.8 percent.We will still return a decent growth rate. We will suffer an indirect impact," he told reporters accompanying Prime Minister Manmohan Singh on his special flight to Washington where he will attend a summit of world leaders tomorrow on the current global economic and financial crisis.
Asked whether with the international trend of interest rates moving towards zero percent, the Indian rates were still high, he said this was a question the Reserve Bank of India (R.B.I.) Governor has to answer. "I think he has given his answer on October 6, October 24 and October 31. He will respond as the situation develops. I can't give an answer toit."
To a question whether there were plans to reduce the Cash
Reserve Ratio of banks, he said once again this was a question
to R.B.I. Governor could answer.
About India's credit growth rate, Chidambaram said he was
not not targeting any growth of credit. It was growing at 29
percent today. If it was non-inflationary growth then there
was no worry about the credit growth rate.
"That is what Dr Bimal Jalan said in an interview two
days ago. We have to juxtapose the rate of credit growth with
inflation. If the growth is non-inflationary then we can
accept the current credit growth. But it depends upon its
impact on inflation. The Governor will have to take a call on
that."
To a question about the British press saying India's
Gross Domestic Product (G.D.P.) growth rate will be less than
projected, he said estimates vary between 7 and 7.8 percent.
I.M.F. is 7.8 percent and R.B.I. is 7.5 to 8 percent. The
Prime Minister's Economic Advisory Council is 7 to 7.5
percent.
"We will still have a very decent growth rate. What do I
have to tell the British. I think it will still be higher than
their growth rate," he said. PTI
"We can't measure the impact. We have said we will be indirectly impacted. There will be impact to some extent on our growth, our exports and it will also impact the currency flows, which it has already.
"But we are confident that given the underlying strengths of Indian economy we can weather the crisis and still return a decent growth in 2008-09. Even the International Monetary Fund (I.M.F.) last week's assessment places India's growth rate in current fiscal at 7.8 percent.We will still return a decent growth rate. We will suffer an indirect impact," he told reporters accompanying Prime Minister Manmohan Singh on his special flight to Washington where he will attend a summit of world leaders tomorrow on the current global economic and financial crisis.
Asked whether with the international trend of interest rates moving towards zero percent, the Indian rates were still high, he said this was a question the Reserve Bank of India (R.B.I.) Governor has to answer. "I think he has given his answer on October 6, October 24 and October 31. He will respond as the situation develops. I can't give an answer toit."
To a question whether there were plans to reduce the Cash
Reserve Ratio of banks, he said once again this was a question
to R.B.I. Governor could answer.
About India's credit growth rate, Chidambaram said he was
not not targeting any growth of credit. It was growing at 29
percent today. If it was non-inflationary growth then there
was no worry about the credit growth rate.
"That is what Dr Bimal Jalan said in an interview two
days ago. We have to juxtapose the rate of credit growth with
inflation. If the growth is non-inflationary then we can
accept the current credit growth. But it depends upon its
impact on inflation. The Governor will have to take a call on
that."
To a question about the British press saying India's
Gross Domestic Product (G.D.P.) growth rate will be less than
projected, he said estimates vary between 7 and 7.8 percent.
I.M.F. is 7.8 percent and R.B.I. is 7.5 to 8 percent. The
Prime Minister's Economic Advisory Council is 7 to 7.5
percent.
"We will still have a very decent growth rate. What do I
have to tell the British. I think it will still be higher than
their growth rate," he said. PTI
