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Get ready for temporary slowdown: PM

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CIOL Bureau
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NEW DELHI, INDIA: Indicating that the global economic slowdown will have its impact on India too, Prime Minister Manmohan Singh said today the country should be prepared to face slower economic growth temporarily.

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“India like other developing economies is feeling the ripple effect of the crisis. Several financial institutions are in trouble and on the brink of solvency," he said while addressing the Parliament.

"The precise impact is difficult to estimate at this point since the depth and duration of the global slowdown remains uncertain," he said.

The Prime Minister added that the government and the Reserve Bank are closely monitoring the situation. Saying that the government’s first concern was to ensure stability of our banking system, he assured that all the bank deposits are safe.

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"We are taking steps to combat the liquidity crisis. The RBI has released Rs 25,000 core for the banking sector. It has also cut 100 basis points in the repo rate to minimize the effect," he said.

Saying that the government has taken a umber of unconventional steps to control the situation, Manmohan Singh added: “This is the worst crisis since the Great Depression and we have taken a number of steps to minimize the impact.”

Do you think the present economic disaster will spell doom for Indian IT? Should India focus on countries other than US and Europe for works?

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