Tendulkar optimistic of recovery in six months

Prime Minister’s economic advisor Suresh Tendulkar on Saturday, predicted that the Indian economy would recover in the next six months.

“After the return of the UPA government, the prospects of political and economic stability have further improved the outlook for an early recovery hopefully during the next six months,” he said.

Slowdown offset

The slowdown has been offset in varying degrees by rapid changes in monetary policy rates and deployment of other monetary packages in December 2008, January 2009 and again after the interim budget in February. “Public sector banks are slowly lowering their lending rates,” he said adding, that with the stabilisation of the international financial market, international credit flows were being slowly restored and prospects for capital inflows too had improved. “Early indications are that real economies in the advanced countries might also show slow revival which would strengthen the domestic growth impulses. I am therefore, quite optimistic about the growth in 2009-10 to be at least as high as in 2008-2009 with a resumption of higher growth trajectory thereafter,” the noted economist said.

However, he further pointed out that the slowdown in the growth which may continue during the current year before revival is bound to “generate pains of adjustment in terms of slower growth of jobs and earning and intensification of competition.”

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