Indian economy to turnaround in Oct: Chidamabaram

Hyderabad, Feb 15: P Chidambaram, the Union Home Minister has said that the next financial year would be tough for the Indian economy, but a turn around should come in Oct. He was speaking at the sidelines of Union Bank branch inauguration in Hyderabad on Saturday, Feb 14.

He said, "The first two quarters will indeed be difficult. The turnaround should come some time in October 2009, or little thereafter." Home Minister said that the Indian economy would grow at 7.1 pc in 2009 and 'a right mix of policies would help bail the country out from difficult times.

"Our growth this year will be 7.1 per cent. 2009 will be a difficult year. Countries after country were officially announcing stimulus actions. Our manufacturing sector is facing difficult times. But with the right mix of policies, right leadership and above all a vision about where India will be, I think it's possible to steer through these difficult times," added Chidambaram.

Reports suggest that the Indian economy which slipped from a growth rate of about 9 pc in the past three years, still looks healthy compared to other economies hit by recession.

Experts are of the opinion that country need to grow at 8.0-9.0 pc per year on a sustained basis to wipe out mass poverty and promote employment. If economic expansion slips below 6 pc in 2009-10 as predicted by some economists in, it could lead to more unemployment.

OneIndia News (With inputs from Agencies)