Rangarajan Predicts 8 Percent Growth for 2010

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Sept. 18 – The chairman of the Indian Prime Minister’s Economic Advisory Council, Dr. C. Rangarajan, was quoted as saying by The Hindu that the Indian economy would show signs of recovery from the second half of the current financial year although a return to nine percent growth of 2007-08 was unlikely in the near-term.

Dr. Rangarajan spoke during an international conference organized by Disaster Management, Infrastructure and Control Society on Thursday. He predicted that economic growth was likely to be between 6 percent and 6.5 percent during the current fiscal and the year 2010-11 would see distinct improvement with economy growing around 7 to 8 percent reports The Hindu.

“To go back to 9 percent growth, we have to wait for the world economy to improve and world trade to pick up,” he said.

Indian banks have been spared the full effects of the global financial crisis because its financial system did not invest heavily on the so-called “distressed” assets and Indian banks have not been expanding overseas. The global slowdown was felt  more in terms of slowing trade and capital flows and dipping exports ever since last year.