Economy woes to persist in next fiscal; economy to grow at 6.5 to 7 pc : PM

January 18th, 2009 - 11:22 pm ICT by ANI  

Manmohan Singh

Mumbai, Jan.18 (ANI): Prime Minister Dr. Manmohan Singh on Sunday said that the Governmet policy couldnt fully insulate the Indian economy from the global downturn. But easing of inflation gives monetary flexibility to deal with the economic woes, which would continue through the next fiscal.
Addressing the gathering at the Economic Times Awards function here, Dr. Singh today said that monetary and fiscal policies would have to be tailored to support the economy next year as well since the difficult period would not end soon.
“Growth in the current year will be lower than the last year … Our problems will not be over in the current year. The difficult period will continue into 2009-10,” said Dr. Singh while adding that the government would have to continue with the supporting environment.
“Both monetary and fiscal policy will have to be tailored to that objective…Fortunately the rate of inflation has eased considerably”.
Inflation is now 5.2 per cent and is expected to decline further.
The Prime Minister, however, said GDP growth in the current fiscal is estimated to vary between 6.5 and 7 per cent. (ANI)

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