Economy will grow at 7 percent, no job cuts: Chidambaram

October 31st, 2008 - 12:44 pm ICT by IANS  

New Delhi, Oct 31 (IANS) The Indian economy would grow at 7 percent despite the global economic meltdown but this would not mean a reduction in existing job levels, Finance P. Chidambaram said Friday.”The RBI (Reserve Bank of India) estimates that growth (in fiscal 2008-09) would be at 7 percent. I think it would be at 7.5 percent but definitely would not be lower than 7 percent,” Chidambaram told reporters here.

“Growth at 9 percent (as was originally anticipated) would signal rapid creation of jobs. Growth at a lower rate does not imply a destructive employment situation,” the finance minister maintained.

“It is for this reason that I disagree with a (industry lobby) Assocham (Associated Chambers of Commerce and Industry) study (saying that Indian corporates would cut jobs by 25 percent due to the global financial crisis),” Chidambaram said.

“The pace of creating jobs might slow down, but even at 7 percent, jobs will be created,” he added.

Responding to a question on the impact of the crisis on India’s exports, Chidambaram said he couldn’t “elaborate” on this.

Asked what India would bring to the table at the G-20 meeting US President George Bush has called in Washington next month to deal with the financial crisis, the finance minister replied: “We are formulating our response.”

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