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Economy Jul 3, 2012

Moily assures economy will be back on track in two months

Coimbatore: Describing "negative sentiments" unleashed in some quarters as "unfounded", Corporate Affairs Minister M Veerappa Moily on Monday said the economy would be back on track in the next one or two months.

"All negative sentiments being unleashed are unfounded. The country is poised for development and there is no reason to be apprehensive about the growth story of India," he said. "The government at all levels is conscious of the difficulties and sentiments.Our economic fundamentals are strong enough to withstand difficulties," Moily said, addressing the captains of the industry here at an interaction organised by CII Coimbatore Chapter.

M Veerappa Moily

The government was taking all necessary steps to revive growth, he said. Stating that the economy had grown by an average of 7.7 percent a year in the past 10 years, Moily, however, said growth was not the only thing that matters.

"GDP growth is not the only agenda of the government of India. We can't have vertical growth and should have inclusive growth.Gross happiness is more important," he said. "(The) 6.5 per cent (GDP growth) is not unreasonable given the international scenario. We would like to grow at 9 percent but 6.5 percent is a strength and not a weakness."

Maintaining that all the intended reforms were around the corner, he said the Direct Taxes Code and public procurement bills were on their way. Reforms in pension, insurance and aviation sectors were also being fast-tracked, he said.

Criticising international rating agencies for their downbeat assessment of the Indian economy, Moily said they were based on perceptions and not on economic indicators.
"There could be merits in that (assessment).But there is a need to take a balanced view," he pointed out. The government was planning to bring in a national business index, which would be based on the broad economic parameters, soon, Moily said.

PTI

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