Bank chief confident of turnaround in Indian economy

November 17th, 2008 - 11:57 pm ICT by IANS  

Kolkata, Nov 17 (IANS) India’s largest foreign financial institution Standard Chartered Bank (SCB) Monday said the country would recover from the economic downturn and return to the path of growth. “There’s definitely an interruption in the process of economic growth in India but it’s not over,” the bank’s managing director Shiv Khazanchi told an interactive session here organised by the Indian Chamber of Commerce (ICC).

Talking about an economic turnaround, he said: “Strong domestic orientation in expenditure, consumption and investment contribute 80 percent of country’s GDP. The risk appetite will also return gradually to the market by second half of 2009 and the demand for locally-manufactured products will also grow in India.”

“Bumber crop production and good monsoon can also do wonders in the time of inflation,” Khazanchi said, adding that India’s GDP growth is likely to come down to 7 percent in 2008-09 and will be further reduced to 6.3 percent by financial year 2010, following the economic downturn.

He said the corporate sector in India would feel the pinch due to the meltdown in the global market.

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