Indian financial crisis may end in next 2 yrs: Dholakia

Bakul Dholakia, former director, Indian Institute of Management, Ahmedabad (IIM-A), today said the Indian economy will be back on normal tracks in two years time.

"Outer limit for Indian economy to come out of the financial crisis is two years, it wont be surprising if its done in one years time," he said.

Dholakia was addressing the delegates at inaugural session of 46th All India Kharif Convention-Kharif Oilseeds, Oil Trade and Industry here.

"The economic scenario of India is not as gloomy as it appears today, buoyancy in 2010 will be back," he said.

"Governments all over the world such as that of France, Britain, China and India acted so swiftly this time that it has enhanced our capabilities to bounce back fast," Dholakia said.

India and China will be the two fastest growing economies of the world, he added.

According to Dholakia, although the Foreign Institutional Investment (FII) in the country have declined, the Foreign Direct Investment (FDI) inflows continue to be positive.

The country is poised to achieve 8 per cent GDP growth in next two years, and emerge as an economic superpower by 2020, he said.

Indian economy was in recession between 1991-94 with just $1 billion forex reserve. But it quickly rebounded within three years, Dholakia added.

"So when the economy can rebound in such a crisis, the chances of bouncing back with mountain of $300 billion forex reserves are far better," he said.