Economy

‘Not going to make any projections'

B.LINE::Finance Minister, Pranab Mukherjee at Parliament House in the Capital on 26-8-2011. Pic : Kamal Narang

B.LINE::Finance Minister, Pranab Mukherjee at Parliament House in the Capital on 26-8-2011. Pic : Kamal Narang  

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Union Finance Minister Pranab Mukherjee said: “... It [lower GDP growth] is no doubt disappointing. There is no room for complacency. We shall have to work very hard — the government and the industry — and I am confident that our workers and farmers would make their contribution in ensuring growth with inclusion … When the final figures for year will be available, there may be a recovery ... Of course [I am] not going to just now make any projections what would be the final figures for the year”.

The Prime Minister's Economic Advisory Council (PMEAC) chief, C. Rangarajan, however, exuded greater confidence. “The growth rate (in April-June) is in line with the growth rate of 8.2 per cent for the year as a whole … We believe that in the third and fourth quarters growth rate will be higher than the 7.7 per cent, which has been recorded in the first quarter … The monsoon has been good and agriculture growth will cross 3 per cent during the year. Industrial growth rate will also pick-up in the second-half,” he said.

A more circumspect Chief Economic Advisor Kaushik Basu felt that the growth numbers for the second quarter also would not be higher but there would be a pick-up in the next two quarters. “You should not get your hopes too high for the immediate next quarter. But I do expect growth in third and fourth quarter of the year to do quite a substantial pick-up,” he said.

The industry, however, is not much amused by these projections as it feels that the Reserve Bank of India's tight-money policy stance is slowing down investments and, therefore, pitched for a pause in rate hikes. “Confederation of Indian Industry (CII) would urge the RBI to refrain from hiking interest rates in the forthcoming policy [on September 16], taking note of the weakness in the economy,” Confederation of Indian Industry Director General Chandrajit Banerjee said in a statement.

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Printable version | Dec 14, 2019 3:21:30 AM | https://www.thehindu.com/business/Economy/not-going-to-make-any-projections/article2411818.ece

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