Global problems, high int rates pulling down growth:FM

India still front runner in terms of growth of GDP

PTI | December 20, 2011



Attributing the slowdown to the Reserve Bank's tight monetary policy and global problems, the government on Tuesday informed parliament that economic growth in 2011-12 will moderate to 7.5 per cent, from 8.5 per cent in the previous fiscal.

"The slower-than-expected growth this year could be attributed to global slowdown, which has resulted in slowing down of growth rate in many countries, including India, as well as to tight monetary policy to control inflation," minister of state for finance Namo Narain Meena said in a written reply in the rajya sabha.

Although the economic survey in February had expected a growth rate of 9 per cent for the current fiscal, the mid-year analysis 2011-12 tabled in parliament recently lowered the growth projection to 7.5 per cent, he said.

"While the economy is expected to slow down in the current year from the levels achieved in 2010-11, India is still among the global frontrunners in terms of growth of gross domestic product (GDP)," Meena said.

The government has been pursuing prudent macroeconomic policies on a ongoing basis to obviate the impact of global financial crisis, he said, adding that the efforts were also being made to strengthen financial markets and increase social spending to protect poor.

The specific measures taken by the government recently to promote growth include "creation of infrastructure debt fund, focusing on public private partnerships, announcement of new manufacturing policy, announcement of draft telecom policy, introduction of land acquisition bill in parliament, and a number of legislative measures to develop banking sector in India", he added.

Meena said the Indian economy grew at an average annual rate of more than 9 per cent between 2005-06 and 2007-08. The growth rate fell to Rs 6.8 per cent in 2008-09 on account of global financial crisis, but recovered the momentum to 8 per cent in 2009-10.

"Even during 2011-12, which has been a relatively difficult year with the growth rate slowing down to 7.3 per cent in the first half (April-September), India is still among the global front runners," Meena said.

Comments

 

Other News

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".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter