New Delhi, Oct 17 (UNI) The government today said the injection of liquidity totalling Rs 1,00,000 crore by reducing the Cash Reserve Ratio (CRR) by a hefty 2.5 per centage points in three consecutive moves will ensure the insulation of the Indian economy from the global liquidity crunch and this along with other measures will ensure a 7 per cent GDP growth for this fiscal.
After briefing on Cabinet decisions, Minister for Science and Technology Kapil Sibal told mediapersons that the Indian Banks are well capitalised and the money of the depositors is "safe" with the lending institutions.
Mr Sibal said the perception that the global economy is slowing down and may even enter a recessionary phase will not have much bearing on India.
He said the government by issuing an advisory to the Banks has ensured that credit will not be a problem.
''Our economic fundamentals are strong. That is why we can now hope to achieve a seven per cent GDP growth,'' he said.
Mr Sibal said the UPA government by taking these steps has demonstrated its effectiveness in tacling the difficult economic situation.
''When we come back to power again, we will again demonstrate our prowess in handling such issues.'' UNI SH/GS RR BD1503