Expressing concern over signs of weakness in the Indian economy, Finance Minister Pranab Mukherjee on Saturday said the government is set to announce certain measures on Monday to improve market conditions in consultations with the Reserve Bank.
He said the Department of Economic Affairs had consulted with RBI Governor D Subbarao about the measures to be taken in this regard.
“We will be able to take certain measures to be announced on Monday which will improve the market condition,” Mr Mukherjee said.
“GDP is at 6.5. There is inflationary pressure, there is depreciation of rupee. There are no doubt signs of weakness in Indian economy,” the Minister said, adding, “I am concerned but not depressed”.
“When the world is in turmoil, then a large economy like India cannot stay immune,” he told reporters.
Basic fundamentals are strong in Indian economy, the Minister said, adding that the period from January to June 2012 saw an inflow of FII money to the tune of $8 billion.
The FII inflow for the corresponding period in 2011 was negative, he said.
“This year FDI stood at 46 billion to 48 billion US dollars,” Mr Mukherjee said, adding that this was possibly his last visit to the city as Finance Minister.
Keywords: Indian economy, inflation
MoF not realize the truth, they are only consider the fact of FII, FDI which the way of inflow measure, they are not telling the truth of ODI and other outflow of Dollar, they are taking the major outflow on Crude oil and Gold. Present days lot of black money are invest in Gold. Gold price is touch unexpected price level. Our government open lot of Gold mortgage companies. This will implies drastic demand of Gold. Payout more in Gold trade. Everytime they consider the one way of growth which is inflow. They never considered the out Flow channel. RBI monitory police is always failed on monitory. They are not fixing any tighten monitory structure/infrastructure.
Like officials, on the eve of retirement, talking about unfinished
tasks, immediate measures to improve the system or solve problems, he is
making statements - when he was in charge, he could not achieve results.
One can always site reasons for nonperformance - we are great in that.
Still the country will laud as if without such people, the country's
future will be doomed.In many organisation's also, we reward
nonperformance for whatever reasons.
FDI is depended on economy of and exports but effected due to low productivity and inflation in our country. The control in salaries is totally failed comparing with countries like Canada and US,15 years back the salary of an iAS or corporate MD was about 10,000/- per month and today it is increased to 10 times in government sector and no limit in private sector which is nonsense. Like wise today 1.0 crore is nothing in India but $200000 is a big money in US. India is not grown on equivalent to US. Our economists have to think a lot about this and take corrective measures why our rupee is not having value. To buy a house in India is costlier than any where in the world , even in our district headquarters to buy a house we have to spend about $75000 where there is no infrastructure like water, roads and power. Still prices are growing in India and salaries, labor wages etc., are growing along with other commodities but overall production is down. Left hand side = Right hand side.
It is quite amazing that any brilliant ideas should only when the horses have bolted the stable and the jockey is about to vacate the saddle and move over to warm the bench of a steward!
Now the Indian rupee had fallen into all-time against U.S dollar due to passionate demand on account of massive import of crude oil around the globe. How can we blame the craze for oil imports when crude oil is the 18 months' lowest level of just USD 90 a barrel! Correspondingly Gold prices are getting slashed. Let it be a blessing in disguise. It is time for exporters to get more rupee equivalent of exports and also to book forward contract for all envisaged exports within the next six months.
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