BOMBAY, Oct 9: The Indian economy will grow between five and six per cent in the year to March 1999, despite fears of a global recession, the head of the country's largest private company said here yesterday, reports AFP.

"India is an oasis of clam in this volatile global environment. said Anil Ambani. Managing Director of textiles and petrochemicals conglomerate Reliance Industries.

'The economy is expected to maintain a steady growth rate of between five and six per cent Our outlook for the economy is stable,” Ambani told reporters.

Reliance announced Thursday a 10 per cent rise in net profits to 217 millioil dollars and a 16 per cent rise in sales to 1.7 billion dollars in the six months to September.

Ambani said India's economic growth would stay on course despite recessionary trends across the world.

India posted five per cent economic growth in the year to March 1998 down from 7.5 per cent the previous year.

While an on going industrial slowdown had led many analysts to predict even slower growth in the current fiscal year, forecasts were revised up wards to about six per cent after good monsoon rains

Globally, several commodity prices are at historic lows. Crude oil prices were at a 25-year low in September. The sharp currency depreciations have hit the competitive strengths of various economies.

The flight "I capital from emerging markets has led to loss of market capitalisation of lx-tween 50 and 60 per cent in local currencies between July 1997 and now since the turmoil began." he said.

In comparison, said Ambani. India was in a far better position than most other

economies.

The Indian rupee has depreciated only 18 per cent from July 1997 till now and Indian stock markets are down only 28 per cent In the same period. The inflation rate is still only in single digits. India is in a relatively stronger position." he said. Ambani attributed India's strengths to various factors.

We have a very strong and huge domestic market. The economy is well-balanced between industry, agriculture and services.

We have a savings rate of 25 per cent of the gross domestic firoduct. which means a lot of unds for investment can be raised locally. Our gradual and conservative approach to full convertibility of the rupee has insulated us greatly from speculative pressures.

All of these are solid foundations for more rapid economic growth in more stable times ahead, he said.