We will improve market condition: Pranab

June 23rd, 2012 - 4:46 pm ICT by IANS  

Pranab Mukherjee Kolkata, June 23 (IANS) Finance Minister Pranab Mukherjee Saturday said he was concerned over signs of weakness in the Indian economy and announced that the central government would soon unveil measures to improve market conditions.

“Yesterday (Friday), secretary of economic affairs had consultations with RBI Governor D.V. Subbarao. We will be able to take certain measures which will be announced on Monday which will improve the market condition,” Mukherjee told media persons here.

Conceding the pressures on the Indian economy, he said the Gross Domestic Product (GDP) was 6.5 percent, there was inflation, besides depreciation in the value of the rupee vis-a-vis the dollar.

“These are no doubt about signs of weakness of the Indian economy.” Linking the country’s economic situation to the global turmoil, Mukherjee said: “Please remember that when the whole world is in turmoil, no country can expect that there will be a pocket of development.”

“And particularly a large economy like India which is third (largest) in (terms of) purchasing power parity, that economy cannot remain insulated from the external influences,” he said.

“Therefore, I am concerned but I am not depressed,” he said. However, the minister said the country’s basic fundamentals were still strong with USD 8 billion flowing into the country between January and June 2012 through the Foreign Institutional Investor (FII) route.

In comparison, he said, the FII inflow was negative in the period, a year ago. He added that Foreign Direct Investment (FDI) was between USD 46 billion and USD 48 billion.

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