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Gloom projected in Economic Survey on expected lines
The industry was not been taken aback by the Economic Survey presented by Finance Minister Yashwant Sinha in Parliament on Thursday. On the contrary it was happy to note that the ministry had presented a realistic picture instead of presenting a satisfactory image by tutoring the statistics. The industry said it was aware that the scenario was gloomy in the light of the sanctions, but it had been taken aback by the scenario presented by the ministry. The survey was on expected lines and the government had the onerous task of setting things right. The industry was unhappy with the government's attitude to expenditure, which it said must be contained to check fiscal deficit. It said even if deficit was contained to 6.1 per cent the current depression would improve. This deficit did not pose a very gloomy picture if industrial growth picked up in the coming days. But right now, neither the industry, exports or agriculture sectors were stimulated, which was a cause of concern. The industry wanted the government to infuse life into the infrastructure sector so that foreign as well Indian financial institutions renewed their interest. Former Finance Minister P Chidambaram said it had been a year of exceptional political instability. Two governments were brought down in a space of seven months. And it was year of turbulence in South East Asia and that was why growth had been stunted. Another former Finance Minister Pranab Mukherjee said fiscal deficit had risen, though rate of inflation was in control. Besides foreign exchange was satisfactory while exports and industrial production was low. All this did not amount to a very healthy situation, he said. The Finance Minister refused to make any statement, saying he had done his job and it was the prerogative of others to make observations on the Survey. (Business Aaj Tak)