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Respectable growth possible for India: RBI

BUDGET 2001

Reserve Bank of India (RBI) Deputy Governor Y V Reddy said on Thursday it was possible for the country to achieve respectable economic growth despite adverse global environment.

"While the US economy has some influence on the prospects for growth, the structure of the Indian economy and the extent to which it is exposed to the US economy is such that it should be possible to maintain somewhat respectable growth despite adverse world economic conditions," Reddy said.

Reddy said the strong point of the federal budget, announced on Wednesday by Finance Minister Yashwant Sinha, was that it was very realistic.

He said the government's targeted net borrowing in 2001-02 (April-March) may not be easy to raise but could be less complicated operationally.

Late on Wednesday, international ratings agencies Moody's Investor Services and Standard and Poor's said they were positive about the budget but kept India's below-investment-grade rating and stable outlook unchanged.

"The rating agencies have always been somewhat conservative in rating India," Reddy said in response to a question on what was necessary to obtain a better rating.

Budget 2001
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