Prime Minister Manmohan Singh said on Monday India must brace for slower economic growth because of the global market turmoil, but the country's banks were safe and there was no need to fear any collapse.
Singh told parliament the government and the Reserve Bank of India (RBI) were monitoring the situation and would ensure that additional liquidity infused into the system translated into actual credit and would take more steps if needed.
He said some estimates projected GDP growth to decelerate to 7.5 percent in the current fiscal year to March, with the most pessimistic estimate at 7 percent -- lower than government projections of 8 percent versus 9 percent rise in 2007/08.
