India got away with the global financial crisis due to absence of full capital account convertibility, industrialist Rahul Bajaj said today. He said that the brakes applied by the Left parties on government's liberalisation plans helped save the country.
"There is no capital account convertibility. Thanks to the Left, the brakes put on liberalisation by the government has saved the country," he said at a function in Mumbai.
Referring to the gdp growth, he said agriculture needs to grow at 3.5-4% which would help the overall gdp to grow by 9%. "The global recession has hit developed countries. India has also been affected but not so severely. Our GDP growth stood at 6.7% last year and is expected at 6-6.5% this year. But for 9% growth, we need 3.5-4% growth in agriculture. GDP cannot grow by nine per cent based on service and industrial sector only," Bajaj said at Jamanalal Bajaj Foundation's Award function.
During the last two years many iconic names in worldbusiness like Lehman Brothers have vanished, while Chryslerand Merill Lynch were sold. The developed world faces the prospect of slow growth and unemployment, he said.
Indian economy is integrating rapidly with the global economy exposing the country to its opportunities and risks, he said.
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