Indian Economy will grow at 7%: FM

The Finance Minster Chidambaram on Friday briefing to media said the Indian economy would grow at 7 per cent. He told that the economy growth rate would not be lower than 7 per cent according to the estimate of the Reserve Bank of India. On Friday, the stock markets are seen in green those ended at the around 743 points up. In the meanwhile, the global crisis is the prime cause for the tumble stock markets for many day. According to media reports, most of the investors have lost their hard earning in the stock market crash.

The assurance from the finance minister would help the market to catch the sentiments and may bounce back to normal trading in near future. But until the global crisis and liquidity crisis back home are rooted out there will be uncertainty in the market. The global crisis is also the prime cause for the costs cut measures adopted by the companies to protect themselves from the impact. There were reports of job cuts across the glob and the Indian companies might adopt these measures too. The Jet Airways lay-off and taking back the employees could be the signal towards the future measures of cost cutting. That was only seen in the aviation sector but other sectors of the economy have been badly affected due to the global meltdown.

Regarding the job cuts the finance minister said that the nine per cent growth rate was a stage for the rapid jobs expansions but the seven per cent growth would not indicate job cuts, according to media reports. However, the measures to check the liquidity crisis back home are being proved effective in checking the inflation too, which significantly dropped to 10.68 per cent. Let’s hope the economy should not go beyond the rate of 7 per cent at least, as once there was dream of having dual digit growth rate.