The Indian economy, which recorded a five-year low growth of 5.3 per cent in the third quarter of this fiscal (2008-09), is expected to recover in the third or fourth quarter of next fiscal (2009-10), according to former finance minister P Chidambaram.
Chidambaram, who is now the Home Minister, maintained that the domestic economy is well on its way to recovery by saying it will clock seven per cent growth by third-fourth quarter of the next fiscal. "By the third and fourth quarter of next fiscal, I am confident the economy will show an upturn and clock a seven per cent growth," Chidambaram said at a conference organised by the International Bar Association.
Agreeing to this, Arvind Virmani, chief economic adviser, finance ministry, said the economy is expected to recover after September. "By September 2009, uncertainties in the Western and European markets are expected to be fully known after which governmental policies and measures are anticipated to stabilize the economy," Virmani said at a CII conference here.
Chidambaram said the economy would return to the nine per cent growth trajectory in 2010-11. "The growth rate was at 5.8 per cent, investment virtually at halt, inflation on rise and there was an uncertainty when we (UPA) came to power in 2004," he said. On the sharp decline in the stock market, he said, "The 21,000-mark euphoria has gone now. When my government assumed power, the Sens*x (^BSESN : 8325.82 +127.9
) was at 4,400 points and today at around 8,000 points - it has still given a 15 per cent annual return."
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