Growth hinges on Eurozone fate: Govt

Growth hinges on Eurozone fate: Govt

Basu said while the ministry’s GDP growth forecast for current financial year was 7.4 per cent to 8.2 per cent, next fiscal would depend on what happened in the Eurozone.

However, he said since the US had its own central bank, the Federal Reserve would have the capacity to bail out the country, unlike the European Union which had only the European Central Bank. “Break-up of the Eurozone is not impossible,” he said here at an event. In that case, India’s growth next year would be low.

Basu said it was expected European leaders would be able to avoid a break-up. In that case, India’s growth would bounce back next year. Further, Basu felt none has to fight corruption, but “intelligently,” as any witch-hunt could impact the genuine decision making process in the government.

“In the name of fighting corruption, we must not end up conducting witch-hunts. That can lead to an atmosphere of generalised suspicion, with grave downside risk... He said in designing corruption control, there was a need for a lot of professional input from economics and law in the same way as for taking out an organ we need professional medical knowledge.