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Updated: May 11, 2012 22:03 IST

Cause for concern, says Subir Gokarn

Staff Reporter
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Subir Gokarn
Subir Gokarn

Expressing concern over the drop in industrial output, Reserve Bank of India Deputy Governor Subir Gokarn, on Friday, said the slow growth rate could be on account of the decline in industrial production.

Addressing the media, after an interactive session organised by the Confederation of Indian Industry (CII) Southern Region here, Mr. Gokarn said the efforts to moderate inflation could have led to the slowdown in industrial growth.

He was commenting on the drop in industrial output, which had contracted by 3.5 per cent in March as compared to last year. Mr. Gokarn said the growth rate came down from 8.5 per cent to sub-7 per cent during the last fiscal and many considered this to be the new growth trend for the country.

About the relevance of Index of Industrial Production (IIP) numbers, he said the numbers alone did not influence anything. Still, these numbers were a matter for concern as the rupee continued to be volatile. The RBI, he said, would continue to make all efforts to curb volatility in the foreign exchange market.

During the interaction, Mr. Gokarn said global economic conditions were likely to be challenging for sometime to come. He said the inflation rate had moderated from 9 per cent to 7 per cent, primarily because the growth had slowed down. The first major challenge would be the continuing inflation and the second challenge would be rising oil prices.

CII Southern Region Chairman G. V. Sanjay Reddy said the confederation would advocate growth of Southern India since this part of the country had been contributing 22 per cent to GDP (gross domestic product) and 28 per cent of the employment. CII Karnataka Chairman L. Krishna was present.

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If policy makers from idividual to family to village to city to state to national levlel are really interested in getting inflation reduced I will advise them to encourage every Indian by minimal tax rebates or rewards to use free infinite solar heat, light and steam without opting fatally costly solar electricity route , free infinite rain water , free open to sky spaces nearby and on roof to grow vegetable twines drip irrigated by harvested rain water in covered spaces in dust free manner, free air waves for information and education, free preventive measures to remain fit and healthy, free idle money and assets including useless gold worth $ 1.2 trillion, free electric traction in place of motor fuels as e bike runs for 1 km in 5 paisa electric railway consumes 50 times less fuel than diesel roads , free 12.5 billion cubic meter soil coming from making 10 cubic meter per capita rainwater harvesting structure for transport check dam leveling , free time for useful works

from:  alok
Posted on: May 13, 2012 at 21:13 IST

If "rising Oil prices",is a concern,REDUCING its IMPORT and increasing
India's production of Crude should be thought.Is this,a Big Oil
Conspiracy?Luckily ONGC-Cairn have struck Oil at KG6,yesterday, as per
reports.

from:  Sadasivan
Posted on: May 13, 2012 at 00:54 IST
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