Slump in economy is temporary, says IIM-B professor R

Calling the present slowdown in the country's economy cyclic in nature, eminent economist Prof R Vaidyanathan on Thursday said things would change for better a year after.

This (slowdown) I think will remain for a year or so. We have to wait for the annual numbers. Whatever is available today is the quarterly numbers, he said.

He was delivering a lecture on Global Economic Crisis: Implications on India organised by the Federation of Karnataka Chambers of Commerce and Industry.

Exuding confidence on the drivers of Indian economy, the IIM-Bengaluru professor said: We have huge potential. So its (slowdown) a cycle type of thing. Five to six years, we have seen significant growth. So there is some amount of downturn."

The IIM-B professor also junked the notion of implication of global economic crisis on India.

 

To a question on how to beat the recession, Vaidyanathan said there was a need to rectify the functioning of civic bodies such as municipalities, water supply boards, town and country development authorities, local governments and the state government.