GDP likely to grow by 7.1 pc in FY'10: Tendulkar

Mumbai, Feb 20 (PTI) As forecast for this fiscal, India
is likely to grow also by 7.1 per cent in the next fiscal and
the economy is likely to see a lower interest rate regime, a
top economist said Friday.

"(The) Indian economy is likely to grow by around 7.1 per
cent... in 2009-10," Prime Minister's Economic Advisory
Council Chairman Suresh Tendulkar told a seminar here.

The growth may be weak in the first half but it is likely
to pick up in the second half of the next fiscal, Tendulkar
said.

"Moving ahead, the system is likely to see a lower
interest rate regime," he said.

'Crisis of confidence' in advanced economy has been quite
serious, Tendulkar said, adding the asset quality in the
Indian banking system may deteriorate owing to the global
slowdown.

However, well regulated Indian banking system is in a
better shape as compared with that of other economies, he
said.

"The asset quality may deteriorate because of the current
slowdown...but the Indian banking system is in a much better
shape (to face the situation)," he added. PTI DU
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