New Delhi, Nov 16 : With the signs of global reversionary trends setting in, Indian Inc say that while they are worried about the global meltdown, they are also confident that the Indian industry can sail through.
According to reports the Indian economy is likely to expand by 7.4-7.8 per cent during 2008-09 fiscal year, slower than nine per cent of last year, as credit crunch and global downturn trims growth.
At a three-day 'Indian Economic Summit' organised by the Geneva-based World Economic Forum in collaboration with Confederation of Indian Industry (CII) in New Delhi, captains of the Indian industry huddled to debate out issues related to the global downturn on Sunday.
Nandan Nilekani, Co-Chairman of Infosys, a top Indian multinational software company and member of the Foundation Board of the World Economic Forum said the global recessionary trends are unprecedented but IT industry is resilient enough to deal with the challenges.
"There is a global scenario which is unprecedented and it will have its impact on everybody but I think the IT industry has demonstrated time and again that it is resilient enough to deal with these challenges. We had a similar situation, though not as profound in 2001 but we were able to get, not only get out of that but take advantage of that. So, I am sure that the companies are following right strategies to wait for the thing to subside and then take advantage of the next cycle of growth," said Nilekani.
Adi Godrej, Chairman and managing director of India's Godrej Group, one of the country's most remarkable industrial corporations said that these trends will pressurise the economies of the world more and the governments have to speed up reforms and boost investment to sustain high growth.
"I think clearly the global crisis is affecting India perhaps a little more than most people perhaps a little more than most people thought but I think we have the means to fight it strongly. I think the government should take very quick action, they have already taken some action but I think liquidity must be improved, CRR, SLR must be cut further," said Godrej.
A sharp outflow of capital, and a fall in share and asset prices due to the global financial crisis has also become a cause of worry for the industrialists.
Rahul Bajaj, Chairman Bajaj Auto and Member of Parliament said that though the exports of the auto industry have been badly hit, the concern is more about the domestic demand.
"Global slowdown will affect mainly exports nothing else. Till now the growth till September (of our company) is 30 per cent in dollar terms. But I fear I now see some signs of problem in domestic market. We also have to see how international demand will affect domestic demand, this is a matter of demand but our sales, the sales of the entire auto industry is down," said Bajaj.
The India Economic Summit began on a note amid growing fears of recessionary trends. Nearly 700 participants from over 30 countries are participating at the Summit.
Indian policymakers expect a moderation in economic growth to less than eight per cent in the year to March 2009.
Earlier this month, Prime Minister Dr. Manmohan Singh cautioned that global financial crisis could be more severe and prolonged, and the government would take all necessary steps -- monetary and fiscal -- to protect growth.
World leaders at the G-20 summit in Washington backed a combination of measures to kick-start growth with better financial market regulation and more say for emerging countries as their response to the global economic crisis.
Signs are mounting of a painful economic slump in many regions, with the euro zone slipping into recession according to data last week, unemployment climbing in the United States and elsewhere and emerging economies slowing.