Union Finance Minister Welcomes Substantial Decline in Core Inflation; Hopeful that Recent Monetary Announcements Would Help in Addressing These Concerns

Union Finance Minister Shri Pranab Mukherjee has welcomed the substantial decline in core inflation from 9.19 per cent in March 2011 to 7.97 per cent, along with drop in inflation for food articles from 9.47 per cent in March to 8.71 per cent in April 2011. Beside it, the Finance Minister said that there is decline in year-on-year overall inflation to 8.66 per cent from 9.04 per cent in March 2011. Shri Mukherjee said that these are welcome trends. However, Shri Mukherjee said that these are not the kind of inflation figures that he is comfortable with. The Finance Minister said that there will be some impact on overall inflation due to the adjustment in the petrol prices effected by the Oil Marketing Companies in the coming months. Shri Mukherjee said that the international scenario on commodity prices also does not appear good at present. Union Finance Minister Shri Pranab Mukherjee said that we will continue to monitor the situation and take necessary measures to address the inflationary pressures in the economy.

EGOM to meet next week to decide on diesel, LPG, kerosene

Finance Minister Pranab Mukherjee today said the Empowered Group of Ministers headed by him would decide on the price hike of diesel, LPG and kerosene when it meets next week.“A decision will be taken on raising prices of these items when the EGOM meets next week,” Mr. Mukherjee told reporters here after meeting Congress MLAs elected in the West Bengal Assembly elections.

To Achieve Sustained GDP Growth Rate of 9 to 10 Percent with Fiscal Prudence and Moderate Inflation is a Major Challenge : Pranab Mukherjee

The Union Finance Minister Shri Pranab Mukherjee said that there are three major challenges before us today. The Finance Minister said that the first major challenge is how to bring entire society especially the poor and vulnerable section of society in the ambit of development process so that everyone shares fruits of benefit of growth and development. Shri Mukherjee said that the second major challenge is to achieve sustained GDP growth at the rate of 9 to 10 percent with fiscal prudence and moderate inflation. Third major challenge is how to develop flexibility in our economic system so that we are not adversely affected or affected to minimum extent due to global economic developments and external shocks. Shri Mukherjee was addressing the probationers of the Indian Economic Service((IES), here today.

Indian Diplomacy to Acquire a Decisive Economic Perspective to its Thinking and Strategic Approach; 2011 to See an Improvement in World Economy: says Pranab Mukherjee

The Union Finance Minister Shri Pranab Mukherjee said that Indian diplomacy has to acquire a decisive economic perspective to its thinking and strategic approach. Elaborating the same, the Union Finance Minister said while anchoring our foreign policy primarily in the promotion of our national self-interest, we need to engage with our partners in a manner that we create strong mutual stakes in each other’s development process, in general, and economies in particular. He said that we have to ensure that our interests and security are safeguarded and promoted. The Union Finance Minister Shri Pranab Mukherjee was addressing the senior officials of Indian Foreign Service (IFS) here today. He said that as a stakeholder in the international system, we need to manage the changes that are underway so that our political and economic interests are not compromised. Shri Mukherjee said that we have to prepare ourselves strategically and with the help of requisite expertise address the issues before the international community and contribute in shaping a more equitable, secure and progressive world order. The Finance Minister said that this necessitates an open mind and willing hands to bring about the change and the required momentum in our thinking and in our skills to address these challenges.

Growth could be 8 per cent during FY 12: FM

Finance Minister Pranab Mukherjee on Thursday projected India's economic growth at 8 per cent for the current fiscal, lower than the budgetary estimate of 9 per cent, due to measures taken to rein in high inflation."If oil prices continue to rise, it would be difficult to achieve higher GDP. GDP may come down to 8 per cent from (the projected) 9 per cent," Mukherjee told reporters on the sidelines of ADB annual meeting in Hanoi.The government's (India) primary concern now is to manage inflation while sustaining high growth rate.Hardening of global commodity prices, particularly oil prices has accelerated inflation, he said adding "our projection is 7.5-8 per cent inflation during the year".

FM’s Intervention on ‘Managing Inflation and Capital Flows’

Finance Minister Shri Pranab Mukherjee made the following intervention on ‘Managing Inflation and Capital Flows’ at Hanoi, today“Before the onset of global crisis, we faced food and fuel price volatility. During the global crisis of 2008-09, with collapse of demand, we experienced a broad flattening of prices. And, as the world experienced recovery from the crisis, different parts of the world faced highly differentiated recovery and inflationary conditions. Till about a few months ago, the slow recovering advanced economies, with few exceptions, still faced low inflationary conditions, while fast recovering emerging economies faced higher inflation.

Row won't affect drafting of Lokpal Bill: Govt

Government has said controversies involving some civil society members of the joint comm for drafting the Lokpal Bill would not affect its working and will work with the members to prepare a "strong and sound" anti-corruption legislation. 

After a meeting of Congress' Core Group headed by Sonia Gandhi with Prime Minister Manmohan Singh by her side in New Delhi on Friday, Finance Minister Pranab Mukherjee said controversies "won't affect" the working of Lokpal Bill drafting panel.