India to grow at 7-7.5 percent: Ashok Chawla

January 17th, 2009 - 7:09 pm ICT by IANS  

New Delhi, Jan 17 (IANS) The Indian economy is now projected to grow between 7 and 7.5 percent in the current fiscal, a top official said here Saturday.”With the presence of strong domestic demand stimulus, India is expected to maintain a strong pace of economic growth despite continuation of global recession,” Ashok Chawla, secretary of the department of economic affairs, said in his inaugural address at the third India China Financial Dialogue.

He, however, added: “The pace of growth next year is contingent upon how long the global recession lasts and how quickly capital flows return to normal.”

Referring to the global economic meltdown, Chawla said: “India has taken a number of steps to inject liquidity into the financial systems, recapitalised banks and other systemically important institutions to tide over the crisis.

“With overall investment climate becoming gloomy, private investment in developing countries would show a declining trend. Expanding investment in infrastructure by both the private and public sectors could act as an effective countercyclical device to stimulate demand and to create conditions conducive for faster growth,” Chawla said.

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