Staff Reporter

Tuticorin: All India Chamber of Commerce and Industries, (AICCI) Tuticorin, organised a special meeting on the effect of global meltdown recently on its premises. J.P Joe Villavarayar, president, presided

Nagamal Reddy, Managing Director and Chief Executive Officer, Tamilnad Mercantile Bank Limited, the Chief Guest, addressed the gathering on ‘Effect of Global Meltdown on Indian Economy.’ He said that despite the global meltdown, the Indian economy had seen tremendous growth. Even though countries such as the U.S. and European nations were facing economic meltdown, India was fortunate enough to be spared because of its strong internal demand.

In spite of many large-size banks’ debacle, the Indian economy had survived mainly because of the strong Indian banking system, with timely warning and controls imposed by the Reserve Bank of India.

However, those sectors which mainly depended on exports, especially to the U.S., were affected. “The stimulus package announced by the Government has generated lot of liquidity in banking system and this has become a great relief to the banks. Also, the Government has been giving a lot of importance to infrastructure and power sectors which will enhance demand and we are seeing all the positive indications that the Indian economy is looking up. Hopefully, the second half of the year will see more recovery and the country’s economy is poised to attain a growth of 9 per cent in 2011,” he said.