Political uncertainty impacting growth: Montek
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
"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.