The government has gone on an overdrive announcing a Rs 32,000 crore stimulus package. Also, the RBI has further slashed the repo rate and reverse repo rate to motivate the growth rate and maintain the growth momentum in the face of a global financial meltdown. However, James Barth, the Lowder Eminent Scholar in Finance at Auburn University and a Senior Finance Fellow at the Milken Institute in the US, feels that more needs to be done both by the US and India to overcome the financial crisis.
He is still upbeat about the country''s growth projection. According to Professor Barth, India''s growth rate has definitely slowed down but is still faring well and can clock a growth of anywhere between six to seven per cent, at a time when the rest of the world is edging towards recession. It is but sure that the global slowdown will have its impact on India''s otherwise robust growth story as part of the coupling effect. While economic superpowers like the US have declared recession, there is good news for India. The several initiatives taken by the government up to now, including the debt waiver scheme for farmers and thrust on infrastructure seems to have helped.
He is still upbeat about the country''s growth projection. According to Professor Barth, India''s growth rate has definitely slowed down but is still faring well and can clock a growth of anywhere between six to seven per cent, at a time when the rest of the world is edging towards recession. It is but sure that the global slowdown will have its impact on India''s otherwise robust growth story as part of the coupling effect. While economic superpowers like the US have declared recession, there is good news for India. The several initiatives taken by the government up to now, including the debt waiver scheme for farmers and thrust on infrastructure seems to have helped.
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