Press Esc to close
Wednesday 27 May 2015
News updated at 11:16 PM IST
Weather
Max: 33°C
Min : 22.3°C
In Bengaluru
Sunny day

Economy likely to grow at 5.5 pc in Q2: Chidambaram

Mumbai, Nov 24, 2012 (PTI)

Finance Minister P Chidambaram today indicated that growth of the economy has slowed to 5.5 per cent in July-September quarter of the current fiscal from 6.9 per cent during the year-ago period.

"When our growth declined to 5.5 per cent in the first quarter of this financial year, and when growth is likely to be around 5.5 per cent in the second quarter of this financial year, it goes without saying that we face a difficult situation," Chidambaram told reporters here. The Central Statistical Organisation (CSO) is scheduled to release the GDP figures for second quarter on November 30.

Indian economy, which was growing at over 8 per cent before 2011-12, has slowed due to both global and domestic reasons. The growth in the first quarter of the fiscal was 5.5 per cent, lowest in a decade.

Chidambaram further said that to overcome the difficult economic situation, there is a need to find innovative ways to increase output of goods and services. "We have to overcome this difficult situation through innovation, through finding ways of increasing the production of goods and services," he said adding that finding new ways to help the poor depends on high economic growth both for jobs and income.

The Finance Minister called upon the banks to play an active role in reviving the economy. "I genuinely and sincerely believe that banks represent the heart of the financial system and it is banks that will drive the revival of India's economy and putting India's economy on high growth path," the minister added.

The Reserve Bank has scaled down India's economic growth prospects for the fiscal to 5.8 per cent from 6.5 per cent.


Go to Top

Photo Gallery
Sheep cross a parched area of a dried-up pond on a hot summer day...

Sheep cross a parched area of a dried-up pond on a hot summer day...

A man sleeps under the shade of a tree on a hot summer day at a public park in New Delhi...

A man sleeps under the shade of a tree on a hot summer day at a public park in New Delhi...

Boys splashing water on their face as the mercury rises in Hyderabad...

Boys splashing water on their face as the mercury rises in Hyderabad...

An Indian man rests inside a concrete pipe on a hot summer day in Hyderabad...

An Indian man rests inside a concrete pipe on a hot summer day in Hyderabad...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday...

Kannada Actress Nitu at the launching of the Taxi always.com service...

Kannada Actress Nitu at the launching of the Taxi always.com service...

Fruit festival in Bengaluru...

Fruit festival in Bengaluru...

Houses in flames during a violence in Atali Village near Ballabgarh in Faridabad...

Houses in flames during a violence in Atali Village near Ballabgarh in Faridabad...

Rahul Gandhi having meal at the house of a fisherman during a visit to the Blangad fishing colony..

Rahul Gandhi having meal at the house of a fisherman during a visit to the Blangad fishing colony..

Narendra Modi with Federal Defence Minister of Germany, Ursula von der Leyen in a meeting...

Narendra Modi with Federal Defence Minister of Germany, Ursula von der Leyen in a meeting...

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