Mon, Oct 20
India's economic growth may decelerate to 7.5 per cent in 2008/09, as the country experienced 'ripple effects' of the global financial crisis and liquidity crunch, Prime Minister Manmohan Singh said on Monday.
"The financial crisis is likely to have an indirect impact on the Indian economy," he said in a statement to lawmakers in Parliament. "We must be prepared for a temporary slowdown in the Indian economy."
"RBI and the government are carefully monitoring flow of credit and will ensure additional liquidity results in actual credit," the PM said.
The Prime Minister assured that all the deposits in Indian banks are safe there should be no fear of failure of Indian banks like the American counterparts.
Singh said the recent steps taken by the government and central bank would help ease a liquidity shortage.
Inflation was also expected to moderate further in the next two months, he added.
source
India's economic growth may decelerate to 7.5 per cent in 2008/09, as the country experienced 'ripple effects' of the global financial crisis and liquidity crunch, Prime Minister Manmohan Singh said on Monday.
"The financial crisis is likely to have an indirect impact on the Indian economy," he said in a statement to lawmakers in Parliament. "We must be prepared for a temporary slowdown in the Indian economy."
"RBI and the government are carefully monitoring flow of credit and will ensure additional liquidity results in actual credit," the PM said.
The Prime Minister assured that all the deposits in Indian banks are safe there should be no fear of failure of Indian banks like the American counterparts.
Singh said the recent steps taken by the government and central bank would help ease a liquidity shortage.
Inflation was also expected to moderate further in the next two months, he added.
source