Experts see opportunity for India in world economic crisis

The world economic crisis will not affect the Indian economy in a large way but can rather emerge as an opportunity for the country. The country's growth being "domestic-driven", India will be able to sail through the economic crisis engulfing the world fairly well.

These views were expressed by financial leaders and economists who had come for the annual leadership summit 'Samvit 2011' organised by the Indian Institute of Management, Lucknow, on Saturday.

Presenting his views on 'The Sinking World Economy and its implication for Indian Businesses," Aditya Puri, Managing Director of HDFC Bank, India, said that the Indian banks are perfectly "safe, secure, profitable and well governed", even amidst the worst recession of the world. He further said that 50 per cent of India's GDP is from domestic consumption and Indian economy is structurally in the right direction. "We do not need to get overly concerned about it (economic situation in India)," he said.

Talking about the foreign direct investment (FDI) in retail sector in India, Puri said that FDI investment is not the solution to all problems of Indian economy. He said that it will not be long before following Wal-mart's examples hundreds of Indians will come up with similar chains of retail at lower price and outdo Wal-mart. "Change that will come with FDI will not come with Wal-mart, it will come with Indians doing it," he said.

KR Kamath, CMD of Punjab National Bank, said that Indian economy, unlike the western countries, is of a different nature it first saves and then invests. The growth rate of the country had in the last decade reached 8 per cent and just because the rate has gone down to 7.5 per cent as of now, does not mean that everything in the country is bad, he said.

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