A day after painting prospects of a 9 per cent GDP rate in 2011-12, finance minister Pranab Mukherjee outlined internal and external challenges such as soaring oil prices and high inflation that could pose a threat.
“The challenge before the government and the Reserve Bank of India has been to support the growth process without compromising on price stability,” Mukherjee said at the annual general meeting of industry chamber Ficci on Tuesday. “The task has not been easy, but we are making progress.”
He also warned that rising global commodity prices could further add to price pressure and push headline inflation over 8 per cent. “The possibility of the global commodity inflation adding to domestic inflationary pressures cannot be ruled out,” he said. He also pointed to the soaring global crude oil prices: “We are already confronting (the situation).”
Mukherjee also said that there were no clear signals on whether the euro zone debt crisis has been contained or would spread to other economies.
He said the global recovery is fragile, with advanced economies exhibiting large fiscal deficit, high public debt and unemployment, and there is a danger of the sovereign crisis in some euro zone countries spilling over to other financial markets.
Source: www.indianexpress.com
“The challenge before the government and the Reserve Bank of India has been to support the growth process without compromising on price stability,” Mukherjee said at the annual general meeting of industry chamber Ficci on Tuesday. “The task has not been easy, but we are making progress.”
He also warned that rising global commodity prices could further add to price pressure and push headline inflation over 8 per cent. “The possibility of the global commodity inflation adding to domestic inflationary pressures cannot be ruled out,” he said. He also pointed to the soaring global crude oil prices: “We are already confronting (the situation).”
Mukherjee also said that there were no clear signals on whether the euro zone debt crisis has been contained or would spread to other economies.
He said the global recovery is fragile, with advanced economies exhibiting large fiscal deficit, high public debt and unemployment, and there is a danger of the sovereign crisis in some euro zone countries spilling over to other financial markets.
Source: www.indianexpress.com
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