Zee News quoted Mr Montek Singh Ahluwalia deputy chairman of Indian Planning Commission as saying that the Indian economy is expected to grow at least 7% in the next financial year on the back of stimulus measures taken by the Government
Mr Ahluwalia on the sidelines of a seminar said that "The world economy expects a recovery in the H2 of the next fiscal in the coming year, India's growth will be at least 7%."
He, however, said that in the immediate term, the manufacturing, gems and jewellery and other export-oriented sectors would suffer some pain coupled with a rise in unemployment levels.
He said that "The pace of economic growth will be slower in the first-half but there will be a pick up in the H2. Post September 2009, there will be a revival in the economy."
He added that with inflation not a problem, the focus would now be on stimulating growth. Both fiscal and monetary policies would now be aimed at supporting growth. Growth is a problem, inflation is not a problem.
Mr Ahluwalia said that "Compared to other countries, we are doing reasonably well we are growing below our potential many sectors are feeling the pain. Right now, the foremost challenge is to restore the growth momentum of the economy."
He said that the fiscal and monetary measures have enough flexibility to respond to the prevailing economic situation. He added that with some sectors affected by the economic slowdown, NPA levels of banks may witness a rise, though these would not be significant.
Mr Ahluwalia further added that "Banks are sufficiently liquid banks should extend credit to needy segments like SME."
Source : zeenews.com