The Finance Minister, Mr Pranab Mukherjee, has expressed confidence that the Indian economy will soon revert back to the path of higher growth trajectory.
The present downturn in economic growth is only temporary, Mr Mukherjee said at the fourth meeting (this fiscal) of the Consultative Committee attached to the Finance Ministry. The meeting focused on the theme “Present State of the Indian Economy and the Roadmap for Future”.
Indian economy grew 6.9 per cent in the second quarter ended September, the lowest quarterly growth in last two years. The Finance Ministry had in this year's economic survey estimated Gross Domestic Product (GDP) growth at 9 per cent for the current fiscal.
Mr Mukherjee told the Consultative Committee that the world economy is going through turbulent times. He said that the Euro zone crisis, downturn in external demand resulting in slowdown in exports, currency volatility and current account deficit had affected the growth performance of the Indian economy.
He said that the food inflation has come down to 1.8 per cent and there is moderation in inflation, in general. Mr Mukherjee said that the savings rate had also gone up. He added that the necessary instructions had been issued to all the Ministries and departments to adhere to their expenditure ceilings.