Indian economy will revive faster than other countries: RBI

March 15th, 2009 - 9:54 pm ICT by IANS  

London, March 15 (IANS) The Indian economy will likely revive faster than other countries though it is difficult to predict when, Reserve Bank of India (RBI) Governor D. Subbarao said Sunday.
Subbarao, who is now in London to attend the Group-20 meet, told BBC World Broadcast in an interview that India could be an engine for global economic revival.

“India can be a growth engine. Not that India can recover ahead of the world. But when recovery starts, India’s recovery is going to be sharp and rapid,” said Subbarao.

According to him, the slowdown has hit the Indian economy in financial and manufacturing sectors, and it is difficult to predict when the economy will recover.

But India’s financial sector still remains sound, safe and well-capitalised, thanks to the prudent policy actions initiated by the government and the central bank, the governor added.

The Indian government has already announced two stimulus packages, while the apex bank has slashed key interest rates several times.

Subbarao added that India had benefited from globalisation and would not turn away from it.

“Globalisation is a double-edged sword. It comes with benefits and costs, so I don’t think pulling out of the global system is an option for any country,” he added.

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