Indian Economy's Recovery Seen In H2: PMEAC Chief

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India's economy will witness recovery in the second half of the current fiscal, report media quoting Prime Minister's Economic Advisory Council Chairman and former Governor of Reserve Bank of India C. Rangarajan.

While addressing a conference on the global economic meltdown, he said India's growth for 2008-09 was 6.7% as the first half for the fiscal escaped the impact of the global recession while for the current fiscal, the impact would be felt throughout the year. However, he was expecting recovery in the second half of this year.

Rangarajan predicted that the country's economy would significantly grow between 7% and 8% in the next fiscal. He added that patience was required to get the economy back to 9% growth as it depends on the pick-up of world trade.

He noted that as India's banks had comparatively fewer branches abroad, the economy was impacted indirectly only. Exports were hit and capital inflows declined during the recession. The country's budget estimates of total expenditure for 2009-10 were 37% higher than the budget estimates of last fiscal. He added that the fiscal deficit for the current year would not exceed the estimated 6.8%.

(Market News Provided by RTTNews)