Mumbai: Pitching a positive outlook for India with a perspective that India will emerge early from the current economic slowdown, Alberto Terol, global managing partner (tax), Deloitte, recently addressed a media round table in Mumbai on how economies the world over can create liquidity in the system in uncertain times.

Terol said, ''It is very difficult to forecast when the last of the current global downturn will be seen. However, going by internal consumption trends in India, it is certain that India will be amongst those countries that will recover faster than others from the current slump and will bounce back with high growth rates soon, once the situation comes back to normal.''

Sharing his perspective on how economies can create liquidity in the system despite the current challenges, he said, ''Flushing the economy with funds alone will not resolve the issue. There is a need to bolster confidence among the people about the positive aspects of the economy and encourage higher spending. This alone can act as a balm to revive economies across the world.''

According to Terol, countries like China are already reworking their strategies for inducing higher domestic consumption as exports have been showing a steep slump.

Providing an outlook for the New Year,  Terol said that he did not expect any improvement in the economic situation at least in the first half of 2009 and predicted a tough time ahead for the US as the country embarks upon creating a new charter for economic revival. Public expenditure to enhance labor output was a definite requirement, he said.