PM says worst is over for Indian economy
Prime Minister said he expected a good rabi crop, which would help to bring down inflation. Implications of a rising inflation rate | Top 10 challenges for India
By Agencies |
MUMBAI: The worst is over for the Indian economy, and measures to control the sharp rise in food prices are taking effect, Prime Minister Manmohan Singh said on Sunday.
Dr Singh, who was in the financial hub to campaign for the ruling Congress party ahead of state polls, also said he was confident the harvest will be normal, despite the weakest monsoon since 1972 that has ravaged rice and sugarcane fields.
"The worst is indeed over," Singh said. "The price rise has been due to the drought. Steps are being taken. I am confident the harvest will be normal," he said.
Singh had said earlier the Indian economy is likely to grow at 6.3 to 6.5 percent in the fiscal year to March 2010, or a seven-year low. Economic stimulus measures were likely to continue as Asia's third-largest economy was not operating at full capacity, Singh has said.
Prime Minister said he expected a good rabi crop. "Prices of some things have risen... The rabi crop will be normal, I am hopeful, and it will have an affect on inflation. The worst is over it seems," he told reporters.
Although the overall inflation is below one per cent, the prices of essential goods, especially vegetables like potato and onion, have continued to rise relentlessly causing pain to common man.
Answering questions on the possibility of another farm debt waiver scheme, the Prime Minister said, "It will not be proper."
Pointing out that loan waiver scheme was a one-time measure, Singh said the government would try to find out meaningful solutions to the problems of farmers if they continue to face problems after implementation of the debt waiver scheme.
On the issue of inter-linking rivers, Manmohan Singh said that work on the proposal was in progress and added that "environmental concerns" were slowing it down.
He made it clear that the government did not want to interfere in deciding the salaries of CEOs of companies.
"I had raised the issue in a general way. The government has no such intention in imposing salary restrictions on CEOs."
Dr Singh, who was in the financial hub to campaign for the ruling Congress party ahead of state polls, also said he was confident the harvest will be normal, despite the weakest monsoon since 1972 that has ravaged rice and sugarcane fields.
"The worst is indeed over," Singh said. "The price rise has been due to the drought. Steps are being taken. I am confident the harvest will be normal," he said.
Singh had said earlier the Indian economy is likely to grow at 6.3 to 6.5 percent in the fiscal year to March 2010, or a seven-year low. Economic stimulus measures were likely to continue as Asia's third-largest economy was not operating at full capacity, Singh has said.
Prime Minister said he expected a good rabi crop. "Prices of some things have risen... The rabi crop will be normal, I am hopeful, and it will have an affect on inflation. The worst is over it seems," he told reporters.
Although the overall inflation is below one per cent, the prices of essential goods, especially vegetables like potato and onion, have continued to rise relentlessly causing pain to common man.
ADVERTISEMENT
Answering questions on the possibility of another farm debt waiver scheme, the Prime Minister said, "It will not be proper."
Pointing out that loan waiver scheme was a one-time measure, Singh said the government would try to find out meaningful solutions to the problems of farmers if they continue to face problems after implementation of the debt waiver scheme.
On the issue of inter-linking rivers, Manmohan Singh said that work on the proposal was in progress and added that "environmental concerns" were slowing it down.
ADVERTISEMENT
He made it clear that the government did not want to interfere in deciding the salaries of CEOs of companies.
"I had raised the issue in a general way. The government has no such intention in imposing salary restrictions on CEOs."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
Related Articles
GenAI can add $14-17 billion to India's real estate economy: ReportADVERTISEMENT
