The Indian economy would grow at 7 % despite the global economic meltdown but this would not mean a reduction in existing job levels, Finance P Chidambaram said on Friday.
“The RBI (Reserve Bank of India) estimates that growth (in fiscal 2008-09) would be at 7 %. I think it would be at 7.5 % but definitely would not be lower than 7 %,” Chidambaram said here.
“Growth at 9 % (as was originally anticipated) would signal rapid creation of jobs. Growth at a lower rate does not imply a destructive employment situation,” the finance minister maintained.
“It is for this reason that I disagree with a (industry lobby) Assocham (Associated Chambers of Commerce and Industry) study (saying that Indian corporates would cut jobs by 25 % due to the global financial crisis),” Chidambaram said.
“The pace of creating jobs might slow down, but even at 7 %, jobs will be created,” he added.
Responding to a question on the impact of the crisis on India’s exports, Chidambaram said he couldn’t “elaborate” on this.
Asked what India would bring to the table at the G-20 meeting US President George Bush has called in Washington next month to deal with the financial crisis, the finance minister replied: “We are formulating our response.”
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