India does not face recession, says Chidambaram

Finance Minister P. Chidambaram said recession means two successive quarters of contraction. We are nowhere near recession despite the financial meltdown globally.

Finance Minister P. Chidambaram on Monday said India does not face recession despite the financial meltdown globally.

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"India is nowhere near recession," Chidambaram said at the annual Economic Editors' Conference in New Delhi.

"Recession means two successive quarters of contraction. We are nowhere near recession," he said.

"There will be a slowdown, but we will remain the second fastest growing economy in the world," the finance minister added.

"Brace for slowdown in growth," Chidambaram said, but sounded a word of optimism saying India would return to the growth trajectory of 9 percent once the financial conditions stabilised.