Press Esc to close
Sunday 28 May 2017
News updated at 5:31 PM IST

EU debt crisis, US slowdown impacting India: Pranab

Last updated: 22 October, 2011
New Delhi, Oct 22 (PTI) 17:00 IST

Debt crisis in Europe and slowdown in the US are having an adverse impact on India, but the fundamentals of the country's economy remain intact, Finance Minister Pranab Mukherjee said today.

Addressing the National Development Council (NDC) meeting here, he said "while there may be some moderation in growth in the current fiscal, the fundamentals of the economy are intact and the medium-term growth prospects remain buoyant".

However, Mukherjee said as the country has become increasingly globalised, it means that "when the world sneezes, India runs risk of catching a cold. "Not surprisingly, the economic crisis in Europe and the slowdown in the US are impacting us adversely".

Indian economy, which recorded a growth rate of 8.5 per cent in 2010-11, is expected to moderate to about 8 per cent during the current fiscal. In the April-June period of 2011-12 the growth slipped to 7.7 per cent, slowest in six quarters.

Mukherjee further said that unlike in 2008-09, the government doesn't have an elbow room for economic stimulus as it committed towards fiscal consolidation. In the Budget 2011-12 the government has envisaged a fiscal consolidation path and aims to bring down fiscal deficit to 4.6 per cent of GDP in the current fiscal.

"As Finance Minister, I stand committed to this path of fiscal consolidation," Mukherjee said adding "The quality of expenditure and its multiplier effect on growth must get our attention".

The Prime Minister, senior central cabinet ministers and most of the chief ministers are attending the NDC meet, which is considering the blueprint or Approach Paper for the 12th Five Year Plan (2012-17).

Go to Top

Photo Gallery
Prime Minister Narendra Modi shakes hands with his Mauritian counterpart Pravind Kumar Jugnauth...

Prime Minister Narendra Modi shakes hands with his Mauritian counterpart Pravind Kumar Jugnauth...

Congress president Sonia Gandhi pays tributes to first prime minister Pandit Jawaharlal Nehru...

Congress president Sonia Gandhi pays tributes to first prime minister Pandit Jawaharlal Nehru...

Congress vice president Rahul Gandhi meeting the victims of Saharanpur caste violence at...

Congress vice president Rahul Gandhi meeting the victims of Saharanpur caste violence at...

A Policeman in action against stone pelters during violent clashes which erupt following the...

A Policeman in action against stone pelters during violent clashes which erupt following the...

Delhi Deputy Chief Minister Manish Sisodia addressing a press conference in New Delhi...

Delhi Deputy Chief Minister Manish Sisodia addressing a press conference in New Delhi...

Congress activists took out a rally in Kolkata on Saturday, demanding improvement in law and...

Congress activists took out a rally in Kolkata on Saturday, demanding improvement in law and...

Youth Congress organised Beef Festivals in front of Ernakulam BJP office in Kochi...

Youth Congress organised Beef Festivals in front of Ernakulam BJP office in Kochi...

Spiritual leader the Dalai Lama confer the Avalokiteshvara Empowerment from the Main Tibetan...

Spiritual leader the Dalai Lama confer the Avalokiteshvara Empowerment from the Main Tibetan...

The completely damaged house where two militants including a top commander of Hizbul Mujahideen...

The completely damaged house where two militants including a top commander of Hizbul Mujahideen...

A group of protesters who have blocked the road near the scene of a fierce gunbattle between...

A group of protesters who have blocked the road near the scene of a fierce gunbattle between...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.