Economy to turn around by October 2009: Chidambaram

Sun, Feb 15 01:20 PM

Hyderabad, Feb 15 (ANI): Home Minister P. Chidambaram has said that the next financial year would be tough for the Indian economy, but a turnaround should come in October.

"The first two quarter will indeed be difficult. The turnaround should come some time in October 2009, or little thereafter," he said at a meeting after inaugurating a branch of the Union Bank of India in Hyderabad on Saturday.

Asserting that the Indian economy would grow at 7.1 per cent in 2009, Chidambaram said 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.

India's economy has slipped from a growth rate of about nine per cent in the past three years, but still looks healthy compared with most developed economies, many of which are in recession.

Policymakers and analysts say the country needs to grow at 8.0-9.0 per cent per year on a sustained basis to wipe out mass poverty and promote employment. If economic expansion slips below six per cent as some economists expect in 2009-10, it could lead to more unemployment.