Economy will rebound by middle of next year
India's economic growth will rebound by the middle of next year, after expanding at a slightly slower pace this financial year, because of the ripple effects of various stresses in the global economy, finance minister P Chidambaram said. Although the government has already forgone revenue worth Rs 31,000 crore through tax cuts, it is open to doing more to stimulate the economy if needed, the minister told an annual conference of economic editors .Mr Chidambaram said the gross domestic product (GDP) growth estimate for the first quarter of the current fiscal was 7.9%, and the secondquarter number was also set to show positive growth. “In our view, we may expect a moderation in growth rate in the current year to a level between 7% and 8%. India would still be the second-fastest growing economy in the world... By the middle of next year, the economy will rebound,” Mr Chidambaram said. Several private forecasters have cut their estimates for India’s economic growth this year to less than 7%. The economy recorded three straight years of more than 9% growth before the slowdown in the current fiscal. He also said the government would try to minimise the negative effect on India from the global turmoil, and to return to the growth trajectory of 9% once markets stabilise.
Labels: P Chidambaram India 2008