Ruling out the recent declination in India's growth rate, Finance Minister P Chidambaram Monday said in a press conference that India's growth rate would remain strong.
"These are challenging times for global economy. They are affecting market sentiments everywhere," the finance minister said in his opening remarks at the annual Economic Editors' Conference at Media Centre, Shastri Bhawan, New Delhi.
"Our foremost task is to augment savings, and then channelise these savings into investments," he said, assuring every step possible to put the Indian economy back on the high growth path.
"India's growth story remains strong," he added.
India's growth rate since last tow years has declined to 6.5 percent in 2011-12 and further to 5.5 percent in the first quarter of this fiscal.
Chidambaram said India fared better than the global economy, which saw the growth drop from 5.3 percent in 2010 to 3.9 percent and 3.5 percent during the next two years. The advanced economies also logged a growth 3.2 percent, 1.6 percent and 1.4 percent.
"India was not immune," he said, adding: "It will do well to remember that out of eight years it is only during two years -- 2008-09 and 2011 11-12 -- our economy grew at less that 7 percent."
He said the tight monetary policy of the Reserve Bank of India (RBI) to tame inflation had dampened growth. "But there is no cause for gloom or despondency."
--With IANS Inputs--
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