New Delhi, September 8

Prime Minister Narendra Modi and his top economic team today assured a group of billionaires that India could withstand global turbulence and China’s economic slowdown, then asked them to open their wallets.

The meeting at Modi’s residence came as the Indian rupee fell to two-year lows and a stock market sell-off wiped out most of the record gains made since he took office last year. Markets bounced back after session.

India’s projected economic growth of eight per cent is still viewed by the International Monetary Fund (IMF) as a bright spot among major economies and has attracted foreign manufacturers, but indebted domestic firms are pushing for rate cuts and protection.

Modi sees a chance to attract more foreign cash as money flows out of China, but it will be tough. Investors and firms increasingly worry he has not moved fast enough since taking office. Annual growth slowed to seven per cent in the June quarter.

Apparently strong headline growth is undermined by doubt about the quality of economic data and a slow recovery, with job losses in construction and a summer drought hitting consumer demand.

“Domestic investment is sluggish because of lack of demand and high cost of capital,” Jyotsna Suri, president of industry group FICCI, said after the meeting.