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UPA return to improve business climate, feel economists

Press Trust of India  |  New delhi 

The return of the UPA government to power will improve business sentiment and expedite recovery of the economy, reeling under the impact of the global financial meltdown, feel economists.     

" (The) Mandate is very clear. It is a matter of great relief and will be very good for the economy. Investor sentiment will improve as there is a clear mandate for five years," said Saumitra Chaudhuri, member of the Prime Minister's Economic Advisory Council (PMEAC), while commenting on the elections results of the 15th Lok Sabha.    

Describing the poll outcome as "very positive", Rajiv Kumar, director of ICRIER, a city-based economic think tank, opined, "Economic recovery will be earlier than expected."    

The UPA, which is all set to form the new government, he added, "will not have to depend upon the Left (parties for support). Government will be able to carry forward the economic reforms programme and there will be continuity in the policies."    

On the impact of inflow of foreign investment, Chaudhuri said, "FDI will improve with improvement in investment sentiments. Other factors too are important."     

The Indian economy, which grew by about 9 per cent for some years, is estimated to have slipped to 6.5 per cent during 2008-09, mainly on account of the global financial crisis. The growth rate for the current fiscal has been estimated at 6 per cent.

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First Published: Sat, May 16 2009. 15:10 IST