On Board PM's Special Aircraft
Nov 14: The Finance Minister, P. Chidambaram, today said that the current global economic downturn will impact India to some extent on growth, exports and currency inflows, but expressed confidence that the country will still return a "decent growth".
"We can't measure the impact. We have said that we will be indirectly impacted. There will be impact to some extent on our growth and our exports and it will also impact the currency flows.
"But we are confident that, given the underlying strengths of Indian economy, we can weather the crisis and still return a decent growth in 2008-09. Even the IMF last week's assessment places India's growth rate in current fiscal at 7.8 per cent. We will still return a decent growth rate. We will suffer an indirect impact," he told reporters accompanying the Prime Minister, Manmohan Singh, on his special flight to Washington, where he will attend a summit of world leaders on Saturday on the current global economic and financial crisis.
Asked whether with the international trend of interest rates moving towards zero per cent, the Indian rates were still high, he said this was a question the RBI Governor has to answer. "I think he has given his answer on October 6, October 24 and October 31. He will respond as the situation develops. I can't give an answer to it."
To a question whether there were plans to reduce the Cash Reserve Ratio of banks, he said once again this was a question to RBI Governor.
About India's credit growth rate, Chidambaram said he was not targeting any credit growth rate. It was growing at 29 per cent today. If it was non-inflationary growth, then there was no worry about the credit growth rate.