India's business hub spared disruption

Mumbai's trains crunched to a halt in April, when a general strike paralyzed the city

By CNN's Alex Frew McMillan in Hong Kong

MUMBAI, India (CNN) -- A paralyzing strike was narrowly averted in India's business capital on Thursday when the worker's union for Mumbai's central railway called off a planned "mass casual leave."

A railway stoppage would seriously hinder travel to and around Mumbai, where many commuters depend on it.

Strikes are a common way of expressing labor, social or political grievances in India. Mumbai was essentially shut down by a mass general strike in April organized by the nationalist Shiv Shena party and labor unions.

Officials will look into grievances

Mumbai avoided similar disruption Thursday after union leaders said they had worked out a settlement with railway officials.

The National Railway Mazdoor Union is protesting against privatization plans for the railways, the findings of a recent report -- which it says would destabilize the system -- and jobs that are going unfilled.

Officials promised to look into the complaints.

A separate dispute has brought the northeastern city of Shillong to a standstill. Students from the Khasi Students Union called a two-day strike on Tuesday.

Banks, stores and offices closed, and cars stayed off the road. Demonstrators burned half a dozen government vehicles, according to Reuters.

RBI backs forecast

There have been sporadic labor protests this year against the privatization reforms of Prime Minister Atal Behari Vajpayee.

India's brokers went on strike in late July, grinding trading to a halt in Mumbai, to voice opposition to market reforms.

Despite those disruptions, the Reserve Bank of India on Wednesday revoiced its growth forecast for India.

The central bank says India, the fastest growing economy in Asia behind China, will see gross domestic product grow 6.0 to 6.5 percent this fiscal year.

The worldwide economic slowdown affects India and China less than the rest of Asia, because those countries rely more on their large and growing domestic markets than exports.

India's economy, however, posted GDP growth of only 5.2 percent for the fiscal year just ended.