Indian growth story is intact: Pranab Mukherjee
He said that the government is going to take some austerity steps to convey that it is responding to the situation.
New Delhi: Finance Minister Pranab Mukherjee on Wednesday assured Parliament that India's growth story remained intact despite Euro zone crisis and Greece turmoil. Pranab attributed the downward trend in the share markets to the global economic crisis. He said that the government is going to take some austerity steps to convey that it is responding to the situation. On retrospective amendments to tax laws, the Finance Minister said Parliament is omnipotent and there was no confrontation with judiciary on it. Pranab also said that the government wants FDI but decisions are time consuming because of coalition compulsions.
Pranab's comments came after the rupee hit a record low against the dollar as risk aversion in global markets added pressure on a currency already under fire from fiscal and current account deficits that are weighing on growth. The Sensex as well as the Nifty extended falls to over 2 per cent.
"I am not pressing panic button. We are concerned over slowdown in economic growth. Government is taking steps to address it. It's a difficult world. Every country is facing economic crisis. We are concerned about our dip in GDP growth," Pranab said in the Lok Sabha. "Indian growth story will not come to an end. It may have hurdles but it will regain. Fuel prices are rising, we will have to take collective measures. If we do not take corrective measures, it will have disastrous impact," he added.