Economy will grow at 7 percent, no job cuts: Chidambaram
By
IANS
| Monday,03 November 2008, 01:05 hrs
|
New Delhi:The Indian economy would grow at 7 percent despite the global economic meltdown but this would not mean a reduction in existing job levels, Finance P. Chidambaram said Friday.
"The RBI (Reserve Bank of India) estimates that growth (in fiscal 2008-09) would be at 7 percent. I think it would be at 7.5 percent but definitely would not be lower than 7 percent," Chidambaram told reporters here.
"Growth at 9 percent (as was originally anticipated) would signal rapid creation of jobs. Growth at a lower rate does not imply a destructive employment situation," the finance minister maintained.
"It is for this reason that I disagree with a (industry lobby) Assocham (Associated Chambers of Commerce and Industry) study (saying that Indian corporates would cut jobs by 25 percent due to the global financial crisis)," Chidambaram said.
"The pace of creating jobs might slow down, but even at 7 percent, jobs will be created," he added.
Responding to a question on the impact of the crisis on India's exports, Chidambaram said he couldn't "elaborate" on this.
Asked what India would bring to the table at the G-20 meeting U.S. President George Bush has called in Washington next month to deal with the financial crisis, the finance minister replied: "We are formulating our response."
"The RBI (Reserve Bank of India) estimates that growth (in fiscal 2008-09) would be at 7 percent. I think it would be at 7.5 percent but definitely would not be lower than 7 percent," Chidambaram told reporters here.
"Growth at 9 percent (as was originally anticipated) would signal rapid creation of jobs. Growth at a lower rate does not imply a destructive employment situation," the finance minister maintained.
"It is for this reason that I disagree with a (industry lobby) Assocham (Associated Chambers of Commerce and Industry) study (saying that Indian corporates would cut jobs by 25 percent due to the global financial crisis)," Chidambaram said.
"The pace of creating jobs might slow down, but even at 7 percent, jobs will be created," he added.
Responding to a question on the impact of the crisis on India's exports, Chidambaram said he couldn't "elaborate" on this.
Asked what India would bring to the table at the G-20 meeting U.S. President George Bush has called in Washington next month to deal with the financial crisis, the finance minister replied: "We are formulating our response."
Reader's comments (2)
1: Our Finance Mister so confident that by
seeing his confidence we get motivated that
we will be not much effetced by this
recission and there will be no loss of
anyones job.
u r great sir.
u r great sir.
Posted by: Rahul - 31 Oct, 2008
2: There's no doubt that our FM is a star. The
level of patience he has in the present
financial crisis and the calculative
statements he makes makes the Indians feel
relatively comfortable in the economic
crisis. On contrary, we could see how global
financial leaders' statements are causing
much frightening in investors, which in turn
is causing the market to decline.
Posted by: Azher - 31 Oct, 2008
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