Growth falls to 7.7 percent

GDP data for the April-June quarter showed country's economic slow down

PTI | August 30, 2011



The Indian government on Tuesday expressed disappointment over the slowdown in the country's Gross Domestic Product (GDP) growth rate and said hard work is needed by all sections, including industry and farmers, to ensure inclusive growth, keeping in mind uncertainty over the global economy and monsoon.

"... It is no doubt disappointing," Indian finance minister Pranab Mukherjee told reporters while commenting on GDP data for the April-June quarter, which showed that growth of the country's economy slowed down to 7.7 per cent in the first quarter of FY'12 from 8.8 per cent in the corresponding year-ago period.

He said there was no room for complacency and everyone, including the government, industry and farming community, will have work hard.

"There is no room for complacency. We shall have to work very hard -- government, industry -- and I am confident that our workers and farmers would make their contribution in ensuring growth with inclusion," he said, adding that one of the important ingredients is creation of more jobs.

Expressing hope that the growth rate would pick up again, Mukherjee said, "We shall have to keep in mind that there are still some areas of uncertainty -- uncertainty in global scenario, uncertainty, of course monsoon is not yet over, last leg is yet to be over."

While the GDP growth figure is disappointing, Mukherjee said there was a "silver lining" to the country's economic performance, as 27.7 million jobs were created between 2005 and 2010.

Furthermore, there was 7.9 per cent year-on-year increase in overall investments during the first quarter this fiscal, compared to a 0.4 per cent rise in the corresponding year-ago period, which is encouraging, he said.

Mukherjee said he was expecting a higher growth rate in the first quarter, but given various factors -- including the overall international scenario and the muted recovery in Europe and the US -- the situation in India is "not that much disappointing".

He hoped that the GDP growth rate would recover by the end of the fiscal, but refused to project any figure.

"When the final figures for year will be available, there may be a recovery... Of course (I am) not going to just now make any projections what would be the final figures for the year," he said.

Referring to the growth in employment opportunities, Mukherjee said those "propagating" the view that this was jobless growth are wrong.

"... is not absolutely correct. They are wrong," he said.

However, at the same time, the finance minister said there should be more growth in employment generation.

 

Comments

 

Other News

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.”   No email

Why India is entering a ‘stagflation lite’ phase

India’s macroeconomic narrative is quietly shifting—from a rare “Goldilocks” equilibrium of stable growth and contained inflation to a more fragile phase where external shocks are beginning to dominate domestic policy outcomes. The numbers still look reassuring at first glance: GDP


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter