"In the case of India it will only amount to slowdown and not recession," said Chidambaram, while expressing confidence that the economy would notch up 7-8 per cent growth rate in the current fiscal.

Chidambaram was on Sunday appointed Home Minister and the Finance portfolio would be looked after by the Prime Minister.

"The Prime Minister can handle this Finance portfolio far better than anyone else and I am confident that the people of this country when they look back at five years of UPA rule will applaud its economic performance under the guidance of Prime Minister Manmohan Singh," he said.

Chidambaram said that under the able leadership of the Prime Minister there would be close coordination between the Finance Ministry and RBI.

Over the last few months in office, Chidambaram's top agenda has been to tackle inflation and initiate steps for stimulating growth.

"There is unfinished work in this ministry too especially in this difficult year," he said.

However, as a member of the Cabinet, he would continue to be deeply engaged in matters that come before the Cabinet.

About his shift to the Home Ministry, he said: "In life, one must take whatever duties entrusted to one and discharge it. It is in that spirit I leave behind this ministry."

On his appointment itself, he said the final call was taken by "the Congress President and the Prime Minister and I answered the call of duty."

He told reporters that he enjoyed working with all of them, since he always followed the principle that there were times when one must speak and there were times when one must observe reticence. "Whenever I felt silence and reticence is the better course, I observed it."

In this age and time and given the size of India's complexities, he said it was better to communicate through the media and explain government's position.