Overall environment will change if Parl functions: FM

Says basic fundamentals of Indian economy still strong though at difficult situation

PTI | December 7, 2011



Finance minister Pranab Mukherjee on Wednesday said fundamentals of the Indian economy are strong despite concerns of inflation and growth, and the overall environment will improve significantly if parliament functions and approves important legislations.

"The economy is at a difficult situation but ...the basic fundamentals of the Indian economy are still strong," he said while replying to the discussion on the second batch of supplementary demands for grants (General) 2011-12.

Parliament, which witnessed turmoil for the past several days over FDI in multi-brand retail, functioned smoothly today and Lok Sabha approved Supplementary Demands with a voice vote that seek to raise government expenditure by an additional Rs 56,800 crore during 2011-12.

According to Mukherjee, "things can improve if the institutions are strengthened, if Parliament functions, if the house debates, discusses and decides (bills)...you will see the atmosphere is changed ... atmosphere electrified".

Referring to strong fundamentals, Mukherjee said the savings rate and the investment rate have continued to remain strong at around 33-35 per cent despite slowdown, though there are concerns regarding inflation and fiscal deficit.

India has been recording good growth compared to many other countries, though it has come down from the high level of 9 per cent.

"Except for one country in the second quarter of the current fiscal, that is Turkey, no other country of comparable size.. have higher growth," Mukherjee added.

India has recorded a growth rate of 6.9 per cent in the second quarter. It may slip to 7.5 per cent in the current fiscal from 8.5 per cent in 2010-11.

As regards price rise, he said that food inflation has come down from 22 per cent in February 2010 to 8 per cent in November 2011 but there is a need to bring it down to 5-6 per cent.

Comments

 

Other News

India reaffirms commitment to climate multilateralism

India has reaffirmed its commitment to climate multilateralism and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), calling for a fair, equitable and ambitious outcome at the 31st Conference of the Parties (COP31) to the United Nations Framewo

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter