Restoring investor confidence to be top priority in 2013
The economic turnaround, however, may take time and more efforts on the part of the government as well as the Reserve Bank of India (RBI), as global factors do not indicate the possibility of a strong revival.
Chidambaram has already suggested that some 'bitter medicine' was needed to put the economy back on the path of fiscal correction and address other issues to spur investments and remove bottlenecks to infrastructure spending.
As regards growth, it had slipped again after recovering from the slowdown, which was witnessed after the 2008 global financial meltdown mainly due to global economic problems and domestic woes.
The growth rate during January-March (2012) quarter slipped to a dismal 5.3 per cent reflecting continued sluggishness. The first three months of the year witnessed the slowest growth in the past several years.
The decline becomes more glaring when viewed against the annual growth rates of 8.4 per cent during 2009-10 and 2010-11. Pulled down by the January-March quarter, the rate of economic expansion during the 2011-12 slipped to 6.5 per cent.
The downturn during 2012 continued despite serious efforts and pep talk to revive growth by former Finance Minister Pranab Mukherjee and his successor P Chidambaram. The
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