Slowdown to last for two more quarters

The government feels that the current slowdown in the Indian economy may last till September this year, after which a recovery will be possible. Chief economic adviser at the finance ministry, Arvind Virmani, said on Saturday that the growth would be slow till September 2009.

He added that inflation will continue to ease in the coming weeks, but there was not much apprehension of deflation in the country at this stage.

India, too, is facing the heat of global slowdown and growth is expected to come down substantially in the current and next fiscal. The government expects Indian economy to grow at 7.1% in the current fiscal. However, analysts feel that after dismal performance in the third quarter, it will be nearly impossible to hit the 7.1% level and a more realistic growth target would be 6.5%.