The Union Finance Minister, Mr Pranab Mukherjee, said on Saturday that the Government would announce “some measures” on June 25 to improve market conditions.
Expressing concern over the slowing Indian economy, the Finance Minister said the steps will be taken after consulting Reserve Bank of India Governor, Mr D. Subbarao.
“Yesterday (on Friday), the Secretary of Economic Affairs had consultations with him (Mr Subbarao). We will be able to take certain measures which will be announced on Monday to improve market conditions,” Mr Mukherjee told reporters here outside his south Kolkata residence.
Conceding that the economy was facing some pressure, Mr Mukherjee said that even though the GDP growth rate stood at 6.5 per cent, India had to contend with a higher rate of inflation and rupee depreciation .
“These are, no doubt, signs of weakness of the Indian economy. But I am concerned. Not depressed,” he said.
Global Turmoil
Wth the global economy in “turmoil”, there cannot be one isolated pocket of development, he said. The Indian economy, he said, cannot be insulated from “external influences”.
“When the whole world is in turmoil, no country can expect that there will be a pocket of development. A large economy like India, which is third in (terms of) purchasing power parity, cannot remain insulated from external influences,” he said.
Strong Fundamentals
Maintaining that the country’s basic fundamentals were strong, he said during the first six months of the year , FII inflows stood at nearly $8 billion.
For the corresponding period last fiscal, it was negative, he said. “This year, FDI is at $46-48 billion ,” Mr Mukherjee added.