Pranab sees economy doing better in current FY
Finance Minister Pranab Mukherjee said the economy is expected to do better in the remaining part of the fiscal, and asserted that there is no need to be panic on rising prices as there is enough food stocks in the country.
Pune: Finance Minister Pranab Mukherjee on Saturday said the economy is expected to do better in the remaining part of the fiscal, and asserted that there is no need to be panic on rising prices as there is enough food stocks in the country.
The economy grew at 6.1 percent in the first quarter of the fiscal.
Mukherjee, who was here to campaign for Congress for the state assembly elections, told reporters that the series of fiscal and monetary stimulus given to combat the slowdown would "produce desired results".
On the outlook for the remaining quarters of the fiscal, the minister said he "expected" the economy to perform better.
"Some indications are available. Foreign Direct Investments (FDI) have substantially increased in the first three months. Industrial production has gone up by two percent in July", he added.
FDI for the first three months stood at 7.02 billion, a three-fold increase from the previous quarter. Industrial production grew close to 7 percent in July, signalling signs of recovery.
The negative trend in the exports was showing a decline, Mukherjee said.
Describing price rise as a concern for the government as well as the common man, he, however, said there is enough food stocks in the country and there is no need to be panic.
"It (price rise) is a matter of supply and demand management. If state governments improve the PDS, there won`t be any shortage of essential commodities as the food stocks are adequate"
Mukherjee said wheat and rice had a surplus of seven million tonne and a revamped PDS in the states could ease the situation as the government had ensured adequate supply of all essential commodities including pulses.
"There is no need to press the panic button", he added. "In September and October there is always a rise in prices one reason being the festive season. A psychological pressure is added by drought and floods", he noted.