Press Esc to close
Friday 06 March 2015
News updated at 12:05 AM IST
Weather
Max: 31.7°C
Min : 16.9°C
In Bengaluru
clear sky

EU debt crisis, US slowdown impacting India: Pranab

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

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
Rajnath Singh celebrates Holi with Delhi BJP Chief Satish Upadhyay and party leader Vijay Goel...

Rajnath Singh celebrates Holi with Delhi BJP Chief Satish Upadhyay and party leader Vijay Goel...

Hema Malini reacts as an MP smears Gulal on her forehead ahead of Holi celebrations...

Hema Malini reacts as an MP smears Gulal on her forehead ahead of Holi celebrations...

People sing and dance while celebrating Holi, the Festival of Colours, in Kathmandu...

People sing and dance while celebrating Holi, the Festival of Colours, in Kathmandu...

Narendra Modi being presented with the autographed tennis racquets of Leander Paes and Martina...

Narendra Modi being presented with the autographed tennis racquets of Leander Paes and Martina...

Widows daubed in colours chant religious hymns as they take part in the Holi celebrations...

Widows daubed in colours chant religious hymns as they take part in the Holi celebrations...

Tourists celebrate Holi in Jodhpur on Wednesday...

Tourists celebrate Holi in Jodhpur on Wednesday...

A child during Holi celebration in Alipurduar on Thursday...

A child during Holi celebration in Alipurduar on Thursday...

Stranded trucks wait for the re-opening of the Jammu-Srinagar highway, at Nandni near Jammu...

Stranded trucks wait for the re-opening of the Jammu-Srinagar highway, at Nandni near Jammu...

Tennis star and ambassador of Earth Hour 2015, Sania Mirza signs a poster during a press meet...

Tennis star and ambassador of Earth Hour 2015, Sania Mirza signs a poster during a press meet...

People watching the wreckage of the Jaguar fighter aircraft...

People watching the wreckage of the Jaguar fighter aircraft...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523