Mr. Subbarao, who is currently participating in the G20's meetings held in London, said that India could be an engine for global economic recovery.

- India may be a growth engine. Not that India can recover before the rest of the world, but when the recovery begins, India's recovery will be sharp and fast, says Subbarao. He added that the downturn has hit the Indian economy in finance and manufacturing, and it is difficult to predict when the economic recovery will occur.

                            Picture: Jonas Rehnberg - Mumbai

- But India's financial sector remains sound, secure and well capitalized, thanks to tight-European policy measures initiated by the government and India's central bank, said the governor.

Key measures include two stimulus packages announced by the Government and several key interest rate cuts by the RBI.

Mr. Subbarao also claimed that India had benefited from the globalization and would continue to implement similar strategies.

- Globalization is a double-edged sword. It provides the benefits and costs, so I do not think to pull out of the global system is an option for any country, he said.
                                                                                          Tony Harkén