India can recover faster than China: RBI
September 30, 2012  17:49

India can recover from global economic slowdown faster than China as the economy is driven by domestic consumption, but the country needs to "get its act together" for this to happen, Reserve Bank Deputy Governor Anand Sinha said in Beijing today.        

 

Speaking to PTI, Sinha also said "confidence issues like the general pessimism and not-so-good-feel factor also affected the economy".        

 

"Both economies (India and China) are affected by the global economic slowdown but India being a domestic consumption driven economy could recover faster," he said.        

 

"But for that we have to get our act together. Being dependent on domestic economy, we would be less affected by export sector performance. So, that could be our strength. But we have to get our act together and whatever weaknesses we have to get around them," he said responding to a question.        

 

When asked what should be done by India to arrest the slide in growth, he said, "We have to get hold of inflation. If we get hold of it, growth will have better prospect. Once growth takes off things would be better. 

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