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The recently held G20 Summit at London was in the news for all the wrong
reasons, with participating nations such as Germany and France disagreeing with
the United States on its stand against recession. The fabulous $1.1 tn aid
package, however, has made nations optimistic of an economic revival soon. On
the home front, as the media played up Dr Manmohan Singhs claims to revive the
economy in 100 days, Dataquest got talking with four CIOs on whether the worst
period was over or was the worst phase yet to come.
And the responses were unanimousthe Indian economy, a mix of regulation
and liberalization is far more resilient that most believe it to be. Moreover,
with the Reserve Bank of India playing a crucial role in protecting the economy
from the impact of the recession by rolling out guidelines and measures in terms
of CRR, SLR, interest rates in last one year, the measures have helped India
withstand the crunch situation.
The verdict among the CIOs is clearthe Indian economy is on the road to
revival with one of them even predicting the revival by September. Optimism runs
deep in the veins of our CIOs
Eternal optimist
Amitava Ray Choudhuri, GM, IT, United Bank of India
As the economic scenario in India starts to show a steady growth since the
coming of the new fiscal, speculation is ripe that by September the situation
will stabilize. The assumption has been further established with the assurance
given by the Indian Prime Minister Manmohan Singh.
In comparison to more advanced economies like the US and Europe, Indian
economy has borne lesser impact of the ongoing global slowdown with the Reserve
Bank of India playing a crucial role in protecting the economy from the impact
of the financial crisis. The various guidelines and measures that RBI has rolled
out in terms of CRR, SLR, interest rates in the last one year has helped India
to withstand the crunch situation.
The Indian economy being a good mix of regulation and liberalization; there
has been timely intervention by the government and the RBI during crunch
situations. This mechanism has been largely protective for India and has helped
it survive such storms. India is better equipped than many other strong
economies to handle such crisis situations, believes Amitava Ray Choudhuri, GM,
IT, United Bank of India. According to him, the scenario will improve post
September.
The overall mechanism driving the Indian economy is capable enough to
sustain through worst of the financial crisis. Even my own assessment that I
have derived from a banking operation perspective, coincides with the fact that
the economic health of India will improve in the next two quarters, feels Ray
Choudhuri. While the demand for credit in the market has been somewhat affected,
the situation is not that alarming. Negating any further crisis he adds that it
is possible that the situation might tumble further globally. But as far as the
Indian economy is concerned, it should overcome such crisis, thanks to the
relevant precautionary economic measures undertaken.
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