Growth at snail’s pace

President Pranab Mukherjee on Thursday in his address at the joint session of Parliament on the opening day of the budget session expressed concern at the slow growth rate of the economy and said that inflation was easing gradually but continued to be a problem.

“The Indian economy is currently experiencing slower growth. Real GDP grew by 5.4% in the first half of the current fiscal year. This is significantly lower than the average of around 8% in the last decade. Our slower growth is the consequence of a combination of global and domestic factors. My government is taking steps to deal with the factors responsible for the slowdown. Inflation is easing gradually but is still a problem,” the President told both Houses of Parliament.

While trying to allay fears of the masses the President said “the government is taking steps to revive investment activity and boost economy. Both global and domestic factors have affected our growth. We need to address the impact of both. My government has responded to the situation by taking several measures to revive investment activity and investor sentiment.”

Regarding the spiraling inflation that has severely affected the common man, the President while trying to instill confidence among the masses said, “In recent months, there have been positive developments too. There has been a moderation in core inflation and recovery in growth is likely. Policy measures announced during the year have also restored optimism at home and abroad.”

On concerns over fiscal prudence, Mukherjee said the government has announced a roadmap for fiscal consolidation and would contain the fiscal deficit to 5.3 per cent of the GDP in the current financial year.

“The Government is also working with State governments to reach a consensus on the Goods and Services Tax,” the President said.

The economic growth during the 2012-13 is expected to fall to a decade low level of 5%. It was 6.2% in the previous fiscal.

The President also said the government remains committed to increasing the share of manufacturing sector to 25% of GDP and creating 100 million jobs within a decade.