'Rupee depreciation matter of concern but no reason for despair'
Bhubaneswar: President Pranab Mukherjee Saturday said the depreciation of rupee, high inflation and drop in manufacturing activity was a matter of "concern" but there is no reason for "despair or despondency" and the economic growth would be restored to the high level as in recent past.
There is "no reason for despair or despondency" as the fundamentals of Indian economy continue to be strong and the country has the "necessary resources, talent and policies to effectively handle current difficulties", Mukherjee said.
"The recent depreciation of rupee, which is more than 18 percent during the last one year, high food inflation and a drop in manufacturing activity are matters of concern.
"Global factors have affected the currencies of many emerging economies and stabilising the rupee is engaging the attention of our policy makers," he said at the convocation of Bharatiya Vidya Bhavan here.
Noting that a number of steps have been taken to strengthen the country's external sector, Mukherjee said a good monsoon this year should have a favourable impact on agriculture growth and food prices.
"Though growth has slowed down in recent times, the fundamentals of our economy remains strong. Steps are being taken to contain the fiscal deficit and boost industrial investments. I am confident of our economic growth being restored to the high levels seen in the recent past," he said.