Falling crude prices, monsoon to help economy
5 Jun 2012 7:45 AM IST
Pinning hopes on declining global crude oil prices and normal monsoon, finance minister Pranab Mukherjee on Monday said these positive factors would help in improving growth rate, which slipped to a nine-year low of 6.5 per cent last fiscal.
‘A normal south west monsoon has been predicted for 2012-13 and there has been a rapid decline in international oil prices in recent weeks... All these factors should help in the recovery of domestic growth momentum,’ he said.
The interest rate cycle has been reversed by the Reserve Bank of India and mining sector growth has turned around. Further, there has been progress in fuel linkage for power projects and improvement in investment growth rate, he emphasised.
There were no ‘major adverse results’ on corporate performance in the last quarter of 2011-12, he added.
‘Like for most parts of the world, the second round of global uncertainty and the slowdown has come rather quickly on the heels of the previous one, with practically no headroom for running a proactive fiscal policy,’ he said.
Indian economy registered healthy growth of 8.4 per cent in 2009-10 and 2010-11, but renewed global uncertainty, emanating mostly from eurozone area affected domestic business sentiment in 2011-12.
‘A normal south west monsoon has been predicted for 2012-13 and there has been a rapid decline in international oil prices in recent weeks... All these factors should help in the recovery of domestic growth momentum,’ he said.
The interest rate cycle has been reversed by the Reserve Bank of India and mining sector growth has turned around. Further, there has been progress in fuel linkage for power projects and improvement in investment growth rate, he emphasised.
There were no ‘major adverse results’ on corporate performance in the last quarter of 2011-12, he added.
‘Like for most parts of the world, the second round of global uncertainty and the slowdown has come rather quickly on the heels of the previous one, with practically no headroom for running a proactive fiscal policy,’ he said.
Indian economy registered healthy growth of 8.4 per cent in 2009-10 and 2010-11, but renewed global uncertainty, emanating mostly from eurozone area affected domestic business sentiment in 2011-12.
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