Anand Sharma says there in no need for panic

MUMBAI: Commerce and Industry minister Anand Sharma today asserted the country's growth story cannot be written off as fundamentals of the economy remain strong, even as the growth rate slipped to just 4.4 per cent in the April-June quarter.

"If any body says our economy is in a position from which it cannot recover, they are wrong," he said while addressing the gathering of at the Chemexcil export awards here this late evening.

"From Brazil to Russia to Indonesia, there is not a single economy, whose currency has not been depreciated. But, there is no reason to panic, no need to be despondent," he said.

This evening, the government shocked everyone with the Q1 GDP data, which showed that economy fared the worst clipping at a poor 4.4 per cent in the quarter April through June with all but one of the eight sectors registering a lower rate of expansion or contraction. GDP had expanded by 5.4 per cent in the same quarter last fiscal and at 4.8 per cent in the March quarter.

On the bleeding rupee, which lost over 21 per cent so far this fiscal, Sharma said there is no need for panic, as curriencies of other economies are also affected.

"Yes, there is a downturn, but there is no need to panic. The government and the policymakers will face the situation and do whatever it takes to control the situation. I have full faith in the industry and they have the capacity to bounce back," he said.

Basing his optimism on the uptick in export side, he said since the past four months exports have been in the positive territory.