 "Falling crude, normal rain to help revive growth: Pranab")
Pinning hopes on declining global crude oil prices and normal monsoon, Finance Minister Pranab Mukherjee today said these positive factors would help in improving growth rate, which slipped to a nine-year low of 6.5 percent last fiscal.
“A normal southwest monsoon has been predicted for 2012-13 and there has been a rapid decline in international oil prices in recent weeks. All these factors should help in the recovery of domestic growth momentum,” he said while highlighting “positives” of Indian economy at the annual conference of CBEC.
The interest rate cycle has been reversed by the RBI and mining sector growth has turned around. Further, there has been progress in fuel linkage for power projects and improvement in investment growth rate, Mukherjee emphasised. There were no “major adverse results” on corporate performance in the last quarter of 2011-12, he added. The Finance Minister, however admitted, that government does not have headroom for proactive fiscal policy.
[caption id=“attachment_331739” align=“alignleft” width=“380” caption=“Mukherjee said that GDP growth in 2011-12 has slowed significantly to just 6.5 per cent which is “disappointing”. PTI”]  [/caption]
“Like for most parts of the world, the second round of global uncertainty and the slowdown has come rather quickly on the heels of the previous one, with practically no headroom for running a proactive fiscal policy,” he said. Indian economy registered healthy growth of 8.4 percent in 2009-10 and 2010-11, but renewed global uncertainty, emanating mostly from eurozone area affected domestic business sentiment in 2011-12.
A tight monetary policy directed at taming inflationary pressures in the economy also came in the way of consolidating economic recovery.GDP growth in 2011-12 has slowed significantly to just 6.5 percent and this has been “disappointing”, Mukherjee said.
PTI
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
](https://images.firstpost.com/wp-content/uploads/2012/06/Pranab_new_PTI_45451.jpg){kind=link}