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Pranab Mukherjee, the finance minister, said it is true that India weathered the financial meltdown better than other nations, but a substantial recovery of the nation hinges on how quickly some important economies emerge from this situation.
At a summit at the Taj Palace Hotel, he said "By merely generating demand in the domestic economy and exploring markets for exports, it is not possible to have a sustainable recovery".
He added, "Developed economies of Europe, Japan and US account for 62 percent of our exports. Another of our key export sectors is information technology. But it has also been hit, because outsourcing has been reduced badly".
The Finance Minister told, "Recovery is halting, slow - whether it will be steady I cannot say right now. I still have to wait for the figures to come". He however added, "Third quarter and four quarter - I am confident. We will reach the targets."
According to him, the journey of Indian economy is long. It has to face several hindrances. "We have to go a long way. The journey won't be easy."
Mukherjee said many forecasts were made relating to the growth of the gross domestic product (GDP) of India. The forecasts were made by Economic Advisory Council of Prime Minister and Reserve Bank of India too. These forecasts are based on some studies.
The Indian Finance Minister is expecting a growth of around 6 to 6.5% during the present financial year. He also said that the price line is still under pressure and the yearly inflation rate is expected to rise by 6 to 6.5 % by the year-end.
Mukherjee informed that he is also trying to get political support in the areas of economic legislations including new acts for companies, labor reforms and setting up of the insurance and pension industries.
"I will try and get the legislations passed as fast as possible. I don't know when - whether in the winter session or the next. I will try and get support from my coalition partners and as much as possible from outside the coalition." The Times of India
October 30, 2009
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