November 03, 2008

“India can breeze through the global financial meltdown and the ensuing economic crisis at only a slightly reduced rate of economic growth of 6-7 percent per annum. The vastness and diversity of the Indian economy will come to its rescue, providing both the necessary demand and supply stimulus for growth, as long as all economic agents – the government, consumers, investors and entrepreneurs – maintain a positive attitude in going about business as usual.”

These reassuring comments were made by CUTS International Secretary General, Pradeep S. Mehta, and are backed by an analytical study by CUTS: He also elaborated on the four practical mantras that define the mentioned positive attitude:

Not disinvesting in shares if the issuing firms have shown sound fundamentals – profits and dividends – in the past

Spending, earning and employing without any unusual inhibitions

Taking advantage of opportunities that a depressed stock market offers, such as investment in undervalued blue chips

Avoiding rumour mongering and associated financial casualties through registered consumer networks that provide reassurances about the safe functioning of banks if true and send out genuine alerts if not

Mehta concluded by emphasising the silver lining in the recessionary cloud for India:
“If India manages to grow at 6-7 percent in these times of potentially zero global growth her importance as a global economic power would surely be vastly enhanced.”