Thursday, February 12, 2009

Industrial growth turns negative by 2%

NEW DELHI: After October, industrial growth has turned negative again in December, by 2% over the year-ago period.

Earlier, minister for external affairs Pranab Mukherjee said the Indian economy will grow by 7 per cent this fiscal even as recent projections by global agencies like the International Monetary Fund (IMF) say that advanced countries' economies would shrink by 2 per cent.

"I am proud to say that in 2008-09 India will still grow by 7 per cent," said Mukherjee while addressing the 81st annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).

He referred to the latest projections for growth by IMF that says advanced countries would shrink by 2 per cent.

However Mukherjee also said that it was not going to be a smooth ride for India.

"India faces a special challenge from the international financial crisis. In a globalised economy while India cannot be immune to the impact of the crisis, we have to address this on many fronts," he said.

Maintaining that the government would be looking at several avenues to spur growth, Mukherjee said: "There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand in order to maintain our growth rate which is essential to the uplift of the multitude below poverty line."

"India remains committed to work with its friends including the G20 for devising a new global financial structure," he added.

Soruce: http://timesofindia.indiatimes.com/Industrial_production_down_by_2/articleshow/4116900.cms

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