ibnlive » Business

Jul 16, 2013 at 11:00am IST

Indian economy doing pretty well compared to other countries: Government

New Delhi: As the Indian economy reels under crisis, the government has said it is fighting the slowdown with a slew of measures. "This government is committed to ensuring that there is growth. I think we're doing pretty well even if we are growing between 5 and 6 per cent," Finance Minister P Chidambaram said on Tuesday.

This came on a day when the markets saw a 300 points fall in the opening trade. While there was a slight recovery for the rupee, which opened at 59.20 vs the US dollar, after the RBI stepped in to stem the continuous fall by revising Bank rates upwards among other measures, but bank stocks opened very low on Tuesday. While the Sensex was 300 points down in the opening trade, Nifty was over 100 points down.

Looking to calm fears, Chidambaram on Tuesday said, "Given what is happening to all the other countries in the world, many are at 0 per cent, I think we are doing pretty well."

Highlighting that the government has been focusing on giving a boost to the public sector, Chidambaram said, "The government took a number of measures on the economic front in past few months. We have hiked investment in public sector enterprises significantly. Projects worth crores have also been cleared."

He also said that a growth of up to 6 per cent is expected this year. "If we achieve 6 per cent growth in the current year that will be a sign of stabilising," Chidambaram said.

Meanwhile, Planning Commission Deputy Chairperson Montek Singh Ahluwalia said that a GDP growth of 5.7 per cent in FY14 would indicate that the economy is on a rebound. "The government's objective is to show a turnaround from last year. The slowdown in the global economy would any way make a 6.5 per cent FY14 growth difficult," Ahluwalia said.

He also said the RBI's measures on rupee volatility were short-term. "RBI should unwind measures once the rupee stabilises," Ahluwalia said.

While the Indian markets crashed on Tuesday, the rupee has also been volatile in the past month. The rupee even touched 61 vs the dollar earlier this month.