India is not facing recession, says Chidambaram
Delivering a lecture after launching the Bharatiya Yuva Shakthi Trust, Union Home Minister P Chidambaram said that India is not facing recession but only a slowdown.business Updated: Jan 24, 2009 12:00 IST
Union Home Minister P Chidambaram on Saturday said India is not facing recession but only a slowdown.
Delivering a lecture after launching the Bharatiya Yuva Shakthi Trust in Chennai, he said manufacturing was facing a sharper slowdown. "We have to take counter-(measures) and sometimes corrective measures to ensure high domestic demand. While the government is taking fiscal measures, the RBI is taking monetary measures," the Home Minister said.
Stating that there was some "monetary shock" due to the drying up of overseas as well as non-banking lending, Chidambaram said the public sector banks handled the larger portion of loans.
"We have to increase lending to stimulate domestic demand," he said, adding the government and RBI can and will work together to work out more stimulus packages.