The Rajkot Chamber of Commerce and Industry is hosting a seminar on economic growth and regional nonequivalent in the industry on Wednesday. On the occasion, the chamber has invited Douglas J. Young, Professor of Economics, Department of Agricultural Economics and Economics, Montana State University, America.
Talking to Business Standard, Young said, "Compared to America, Indian Bank system is in a better position and more stable. Indian banks are in a strong position as the ratio between lending and deposit is vast in India. On the other hand, American banks, till the recession, gave loan to the people even with zero income. But now, there are changes in bank regulations along with restructuring in lending. American banks used to believe that real estate sector never goes down and thus, lent on it without any hesitation, but they were wrong. Now banks have understood this and made some changes."
The seminar will also discuss Indo-American economy and the effects of slowdown in regional industries. Talking about the Indian and American economy further, Young said, "India continues to be an attractive place for investment. The growth rate of the country will about five percent which is higher than America. Agriculture is one of the factors, which will help survive during slow down. While for American economy, this year will be quite disturbing, but next year onwards, it will be a good time."
Young added that Gujarat being a leading economic performer in this country, poverty reduction is active, and per capita income is also higher, as compared to other states.
