Political uncertainty impacting growth: Montek
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Last Updated: Friday, December 02, 2011, 21:21
  
New Delhi: With Parliament unable to enact several reform-linked legislations, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Friday said political uncertainty is impacting growth.

India's economy grew by 6.9 per cent in the July-September period, slowest in the last nine quarters. Euro zone debt crisis and risk aversion by investors in the stock market have aggravated the sentiments.

"Slowdown has occurred because of (low) investment expectations, because of political uncertainty and I think because of delay in implementing infrastructure projects...," Ahluwalia said at the Hindustan Times Leadership Summit here.

However, the mood can change for better if some big infrastructure projects take off, he said. "...We should concentrate on (infrastructure projects)...political mood will change within a period of time," Ahluwalia said.

Earlier, addressing the summit, Finance Minister Pranab Mukherjee expressed his disappointment over logjam in Parliament.

"I am practically begging almost everybody that Parliament is essentially meant for making legislation...Unless Parliament functions, it becomes very difficult. I request my colleagues that let us do legislation and let us fight each other outside legislation," he said.

About two weeks of the winter session have been washed away as the Opposition, supported by UPA allies - Trinamool Congress and DMK, have paralysed the proceedings demanding roll-back of the FDI decision.

Several important legislations which will enable foreign investment in the pension sector and hike the FDI limit in the insurance to 49 per cent are pending approval of Parliament.

PTI


First Published: Friday, December 02, 2011, 21:21


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