Economy starts moving slightly, says Pranab
Economy has started moving upward due to two stimulus packages in the last fiscal, but scanty rainfall this year may play a spoilsport, government told the Lok Sabha on Friday.Updated: Aug 07, 2009, 15:32 IST
Economy has started moving upward due to two stimulus packages in the last fiscal, but scanty rainfall this year may play a spoilsport, government told the Lok Sabha on Friday.
"The economy has started moving slightly, but still I am not quite sure because other problems may come from adverse impact of scanty rainfall," Finance Minister Pranab Mukherjee said during the Question Hour.
"My colleague, the agriculture minister (Sharad Pawar) is making the assessment. We are also making the assessment but this is a problem and this problem is a reality and we trying to handle it," he said, replying to a question on slowdown of credit between September, 2008 and June, 2009.
When the industrial crisis engulfed developed countries and the financial meltdown became a major financial crisis all over the world, it had its worst impact, the minister said adding that credit is required for investment, for carrying business and using it for productive purposes.
He said these activities were coming down during the crisis period.
A number of steps have been taken by the government like two stimulus packages in December last year and January this year, he said adding that movement of economy is not just like "switch off or switch on".
"Even if we take action today by adjusting the credit policy, it will take some more time to get its full impact on the overall economy," Mukherjee said.