ID :
79568
Sat, 09/12/2009 - 02:05
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Shortlink :
http://m.oananews.org//node/79568
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Economy recovering but modestly: India's Finance Minister
New Delhi, Sept 11 (PTI) India's Finance Minister
Pranab Mukherjee Friday exuded confidence that economy will
pick up during the second half of current fiscal but overall
growth will be moderate and said the stimulus for revival of
industry would not be an annual affair.
"I am confident that in the third quarter and the
fourth quarter it will be possible for us to have good growth
but this growth will not be as good (as during the last
year)," Mukherjee told journalists at the Women's Press Corps.
Hoping that industry would follow the growth trend of
July, a month that saw factory output rising by 6.8 per cent,
the Minister said that it was imperative for him to give the
stimulus packages to help economy fight the effects of global
financial turmoil and this resulted in higher fiscal deficit.
"If the stimulus was given, it was a one-time measure.
One cannot expect this would be repeated every year... had I
not reacted, my fiscal deficit would not have gone high," he
said but cautioned that high level of budgetary gaps were not
sustainable.
Asked about the opposition to disinvestment by some
constituents of UPA, Mukherjee said, "I will manage the
coalition as we have done it in the last five years... After
all what is politics, it is to manage contradictions."
On drought, he said, the adverse impact, particularly
on the paddy crop, was over and added "with this rain, I hope
improvement. We have suggested to the state agriculture
ministers to have short duration crops". The Centre, he said,
would provide seeds for such crops.
Referring to 6.8 per cent industrial growth in July,
Mukherjee said, "It is picking up. I hope that it will
continue."
The Index of Industrial Production (IIP) showed a rise
of 6.8 per cent in July year-over-year, while the growth was
6.4 per cent in the corresponding month last fiscal.
Pointing out that signs of improvement were visible in
critical sectors like cement, steel, consumer goods and
housing, he said it would not be able to compensate for
decline in exports.
"There is a possibility of (sustaining upswing in
industrial growth) but that possibility is not adequate to
compensate for shortfall in exports," he said, adding, unless
demand in industrial world improves, exports will not pick up.
Answering questions on price rise, the Minister said:
"We can try to ameliorate the adverse impact of the rising
(commodity) prices, but if the procurement prices are
enhanced, naturally the market prices will go up."
The government, he added, had significantly enhanced
the Minimum Support Prices (MSPs) of wheat and rice in the
last five years.
As regards the shortage and rising prices of pulses,
Mukherjee said, "Every year we have to import pulses (to
bridge the demand-supply gap). We have also decided that there
will be a mission mode approach to augment pulses production."
PTI TAN
PMR
Pranab Mukherjee Friday exuded confidence that economy will
pick up during the second half of current fiscal but overall
growth will be moderate and said the stimulus for revival of
industry would not be an annual affair.
"I am confident that in the third quarter and the
fourth quarter it will be possible for us to have good growth
but this growth will not be as good (as during the last
year)," Mukherjee told journalists at the Women's Press Corps.
Hoping that industry would follow the growth trend of
July, a month that saw factory output rising by 6.8 per cent,
the Minister said that it was imperative for him to give the
stimulus packages to help economy fight the effects of global
financial turmoil and this resulted in higher fiscal deficit.
"If the stimulus was given, it was a one-time measure.
One cannot expect this would be repeated every year... had I
not reacted, my fiscal deficit would not have gone high," he
said but cautioned that high level of budgetary gaps were not
sustainable.
Asked about the opposition to disinvestment by some
constituents of UPA, Mukherjee said, "I will manage the
coalition as we have done it in the last five years... After
all what is politics, it is to manage contradictions."
On drought, he said, the adverse impact, particularly
on the paddy crop, was over and added "with this rain, I hope
improvement. We have suggested to the state agriculture
ministers to have short duration crops". The Centre, he said,
would provide seeds for such crops.
Referring to 6.8 per cent industrial growth in July,
Mukherjee said, "It is picking up. I hope that it will
continue."
The Index of Industrial Production (IIP) showed a rise
of 6.8 per cent in July year-over-year, while the growth was
6.4 per cent in the corresponding month last fiscal.
Pointing out that signs of improvement were visible in
critical sectors like cement, steel, consumer goods and
housing, he said it would not be able to compensate for
decline in exports.
"There is a possibility of (sustaining upswing in
industrial growth) but that possibility is not adequate to
compensate for shortfall in exports," he said, adding, unless
demand in industrial world improves, exports will not pick up.
Answering questions on price rise, the Minister said:
"We can try to ameliorate the adverse impact of the rising
(commodity) prices, but if the procurement prices are
enhanced, naturally the market prices will go up."
The government, he added, had significantly enhanced
the Minimum Support Prices (MSPs) of wheat and rice in the
last five years.
As regards the shortage and rising prices of pulses,
Mukherjee said, "Every year we have to import pulses (to
bridge the demand-supply gap). We have also decided that there
will be a mission mode approach to augment pulses production."
PTI TAN
PMR
