Govt to announce steps on Monday to improve economy: Pranab

 

The government on Monday will announce measures to improve market conditions, Finance Minister Pranab Mukherjee said.

“I am concerned over signs of weakness in the Indian economy.

The government after consultation with Reserve Bank of India Governor D Subbarao would unveil some measures Monday to improve the market conditions,” Mukherjee said at his residence in South Kolkata.

“Yesterday (Friday), secretary of economic affairs had consultations with him (Subbarao). We will be able to take certain measures which will be announced on Monday that will improve market condition,” Mukeherjee said.

Referring to the uncertain condition of global economy, Mukherjee said, “Please remember that when the whole world is in turmoil, no country can expect that there will be a pocket of development.

And particularly a large economy like India which is third in the purchasing power parity, cannot remain insulated from the external influences. Therefore I am concerned but I am not depressed.”

Rupee has lost over 20 per cent against the US dollar in the last one year. It has weakened to over Rs 57 to a dollar, exerting inflationary pressure on the economy, particularly with regard to crude oil imports. The stock market has lost ground and industrial growth has slipped to 0.1 per cent in April.

However Mukherjee said, “Though the global economy is in a vulnerable condition, the basic fundamentals of Indian economy are strong enough to resist the pressure.”

“Between January and June 2012, $8 billion made inroads into the country through the FII route which was negative in the year ago period,” Mukherjee said, adding that, “...Foreign Direct Investment stood at $46-48 billion which is higher than last fiscal.”

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