Finance minister Pranab Mukherjee has said that the crisis in many European economies, hit by sovereign debt worries, have hurt the domestic economy with export orders drying out even as he expressed confidence that India will climb back to a high growth trajectory in the near future.
"Due to euro zone crisis, downturn in external demand resulting in slowdown in exports, currency volatility and current account deficit among others have also affected our economy," Mukherjee told parliamentarians while addressing the fourth meeting of the consultative committee attached to the finance ministry.
The subject matter of the meeting was "Present State of the Indian Economy and the Roadmap for Future".
Mukherjee said that necessary instructions had been issued to all ministries and departments to adhere to their expenditure ceilings.
"Members said that efforts should be made to stop the migration of agricultural labourers from villages to cities. In order to achieve this, setting-up of agrarian industries in rural areas should be encouraged," a statement from the finance ministry said.
Some members, the statement said, suggested that there was a need to bring foreign direct investment (FDI) for the benefit of farmers.