At an annual event in New Delhi Finance Minister P Chidambaram said that India is nowhere near a recession. The event brought together economic editors and other members of the media from across the country for a dialogue with the government,He also spoke about liquidity, inflation and his expectations on GDP growth, as he has done earlier on several other occasions. The Finance Minister on 24th Nov, tried to explain the journalist community about his plans to try and keep recession far from India''s shores. Chidambaram said, I hope the worst is over.
For over two hours, the he patiently conveyed his ministry''s plans to a number of financial journalists. India is nowhere near recession. The growth estimate for the first quarter of 2008-09 is 7.9 per cent and the second quarter undoubtedly will show high positive growth, he said.The Finance Minister reiterated that increased liquidity should mean increased flow of credit and that he would personally meet the chiefs of banks from across the country after their meet with the RBI governor.
Chidambaram said, If inflation continues to decline, policy rates may also moderate with a bias towards growth. However, for the first time, Chidambaram admitted that fiscal deficit will take another year to drop to three per cent of the total GDP, but he ruled out an immediate infrastructure fund. Instead, he stressed on speedy completion of existing projects.
For over two hours, the he patiently conveyed his ministry''s plans to a number of financial journalists. India is nowhere near recession. The growth estimate for the first quarter of 2008-09 is 7.9 per cent and the second quarter undoubtedly will show high positive growth, he said.The Finance Minister reiterated that increased liquidity should mean increased flow of credit and that he would personally meet the chiefs of banks from across the country after their meet with the RBI governor.
Chidambaram said, If inflation continues to decline, policy rates may also moderate with a bias towards growth. However, for the first time, Chidambaram admitted that fiscal deficit will take another year to drop to three per cent of the total GDP, but he ruled out an immediate infrastructure fund. Instead, he stressed on speedy completion of existing projects.
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