IANS quoted Mr D Subbarao governor of Reserve Bank of India as saying that the Indian economy will likely revive faster than other countries though it is difficult to predict when.

Mr Subbarao, who is now in London to attend the Group 20 meet, told BBC World Broadcast in an interview that India could be an engine for global economic revival.

He said that "India can be a growth engine. Not that India can recover ahead of the world. But when recovery starts, India's recovery is going to be sharp and rapid."

According to him, the slowdown has hit the Indian economy in financial and manufacturing sectors and it is difficult to predict when the economy will recover. He added that but India's financial sector still remains sound, safe and well capitalized, thanks to the prudent policy actions initiated by the government and the central bank.


Mr Subbarao added that India had benefited from globalization and would not turn away from it. Globalization is a double edged sword. It comes with benefits and costs, so I don't think pulling out of the global system is an option for any country.

The Indian government has already announced 2 stimulus packages, while the apex bank has slashed key interest rates several times.

(Sourced from IANS)