Local Release.........

Press Information Bureau

Government of India

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FINANCE MINISTER ADDRESSES BANKERS' CLUB IN KOLKATA

Kolkata, September 14, 2009

 

The Union Finance Minister Shri Pranab Mukherjee has said that India has been able to overcome the adverse impact of the global meltdown to a great extent. The GDP growth of the Indian economy was to the extent of 8-9% on an average during the last three years, but this year the country had to settle for a lower growth of 6.7%, he said. Shri Mukherjee was addressing the meeting of the Bankers' Club in Kolkata on Saturday. The Finance Minister said that the adverse impact of the recent global financial crisis started in a modest way in USA and at that time no body could imagine that it may grow to such a huge dimension. Shri Mukherjee informed that the central government and the Reserve Bank of India have announced a series of Stimulus packages in December2008, January 2009 and February 2009 to stimulate the economy. He said, in the summit of the G-20 of Finance Ministers, it was recommended that it might not be the appropriate time for the implementation of the Exit Policy when the world's economic growth would not be more than 2.5%. Shri Mukherjee also said that the Government opted for higher borrowing and fiscal deficit, in order to keep the growth momentum. The growth in the first quarter of this fiscal remain satisfactory at 6.1%. Of late, delayed monsoon has to some extent dampened the growth prospect. However, there is no cause for serious concern, he assured.The surplus storage of food, both wheat and rice, could take care of any deficiencies. Late arrival of monsoon has given us solace of early Ravi crop  and possible short duration crop thereafter. The government has allocated Rs.39000 crores in budget for NREGP for ensuring alternate employment to the rural populace, Shri Mukherjee said.

 

While commenting on the recovery of Indian Economy, the Finance Minister informed that certain sectors are picking up. In export, the uncertainty still prevails and the central government has already declared concession packages for the exporters. The conditions are likely to improve after the recovery of the financial conditions in Europe and North America.

 

The Finance Minister informed that experts are working on various bases of price indices. He emphasized on the need for managing the price front, failing which weaker sections of the society would be affected. He further assured that the Indian Economy has the resilience and capacity to absorb the shock.

 

The Union Finance Minister expressed his happiness for the effective use of the platform by all the senior bankers to discuss matters of common interest.   

 

sc/dk/kol/16:20 hrs.