Expressing confidence that the economy seems to be stabilising, a key finance ministry official on Thursday said that there is a need to tap domestic sources of growth as global factors and not depend on external impetus.
“Hopefully, growth is stabilising. Certainly every move that government is trying to make will help to strengthen growth,” said Raghuram Rajan, chief economic adviser to the finance ministry.
But Rajan cautioned that the sudden spurt in industrial growth to 8.2 per cent in October should not be seen as a definitive signal of a rebound in growth. “We should not be overtly influenced by one number. We should take it as part of pattern,” he said while addressing a briefing to announce the Delhi Economics Conclave organised by the finance ministry between December 14 and 21. The industrial production growth rate bounced back to a 16-month high of 8.2 per cent in October on good performance of the capital goods, manufacturing, indicating sudden recovery in the economy.
“Clearly India will be influenced by growth constraints in Europe. After all our exports are part of the production. So if exports are declining... it is obviously going to have influence on the economy,” he said.