The President of India, Pranab Mukherjee feels that the fall in Indian economy is a consequence of major international crisis. But at the same time he said that he was confident about revival of Indian economy.
"The fall of Indian economy began precisely in 2008-2009 when as a consequence of major international financial crisis India GDP came down from 9 plus percent to 6.7%," the President while speaking at 160th annual general meeting of Bengal Chamber of Commerce on Saturday said.
"Then there was an improvement in 2009-2010 and 2010-2011 with the GDP registering a growth of 8.7% and 9.3%. Again there was slump because in fact the world economy did not fully recover from the downtrend in 2008-2009," he said.
He also said that the developed economy in Europe, North America and Japan were moving slowly then, though economy of emerging markets such as China, India Brazil, South Africa and many others they made substantial contribution to world output and trade, but 2011-2012 and substantially in 2013 the economy of these countries slowed down also.
"India in a globalised economy is no exception. There are areas of concern but there is no room for gloom or despondency," he said.
Saying that certain fundamentals of India are strong he said, "Corrective measures are necessary, but there is no room of despondency."
"To run a complex economy and in more complex international situation. If we expect not to be touched by global development perhaps it may not be possible. We should draw our lesson from the past," he said.
Saying that stabilising the rupee is foremost in the minds of the policy makers, and that strong measures have been initiated to strengthen the external sector Mukherjee said, "I am confident that the Indian economy will soon return to the high growth trajectory."
He also said that the process of economic reforms have to be continued with vigour and firmness.
The President also said that there are crucial legislations pending in parliament, which clearly demonstrates the determination of policy makers. Referring to the good monsoon this year, which, he said that would impact positively on agricultural growth and food prices.
"I do hope it will have its impact on inflation and also on agricultural growth."
He said that certain facts cannot be ignored and it is true that when 2003-2004 the support price of wheat and rice have become more than twice in 2012.
While the price of wheat was Rs. 650 per quintal in 2003-2004 it was Rs. 1285 per quintal in 2012. Similarly the price of rice, which was Rs. 650 per quintal in 2003-2004 rose to Rs. 1260 per quintal in 2012 said the President Of India.
The President also said that our experience in the recent past has shown that we have to live with adversities whether it comes from the external or the domestic sector.