Dismissing different sections’ allegations that the ruling government in India is suffering from ‘policy paralysis’, Union Home Minister P Chidambaram avowed that the nation would come out of the doldrums to the eight percent growth trajectory in this financial year 2012-13. The former finance minister exuding confidence in the capabilities of Indian Prime Minister Manmohan Singh, who now also holds the Finance portfolio, opined that the government has identified various causes of flagging economic momentum and Manmohan Singh will unveil measures to revive the rate of economic expansion to eight percent.
The incumbent Home Minister held the financial turmoil in European region responsible for the deteriorating domestic economic growth rate and stated that after clocking superior growth rates of over eight percent during the past few years, 2011-12 was a difficult year owing to the Euro-zone debt crisis as the growth rate drifted to 6.75%. However, highlighting that Indian economy has a high propensity for growth; he stated that addressing investors’ concerns and the reasons behind declining domestic savings rate, will help in improving investment environment in the country.
Claiming that the fundamentals of Indian economy are still strong, Chidambaram not only appreciated saving habit of Indians but also highlighted that business houses are sitting on piles of cash and the government is taking efforts to create suitable opportunities to bring out those cash for investment. He also believed that though there are some qualms over Indian markets however those would soon go away.
Moreover, the Union Human Resource Development Minister Kapil Sibal affirmed that owing to the underlying strength in Indian economy several concrete steps have been taken in various fields from Right to Information to Right to Education and a number of development schemes funded by the Central government are being implemented. He said no development scheme has been scrapped owing to the slower growth rate in the last fiscal.
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