The Hindu : Business : 'Monsoon revival may lead to good farm output'

Online edition of India's National Newspaper
Wednesday, Aug 04, 2004

Business

Business

'Monsoon revival may lead to good farm output'

By Our Staff Reporter

BANGALORE, AUG. 3. The Union Finance Minister, P. Chidambaram, said here on Tuesday that, "any growth in the economy between 6.2 per cent and 7.4 per cent is perfectly acceptable." He also said that "concerns over the monsoon are receding and a good monsoon, even if delayed, is expected, leading to good agricultural production this year."

He told presspersons that "reports are encouraging" on monsoon forecasts for the remainder of the season. Last year's 8.2 per cent growth in the economy, coming as it did after a poor performance the previous year, was "still an heart-warming growth." "On the back of that 8.2 per cent, any growth between 6.2 and 7.4 is perfectly acceptable."

Industrial growth

Referring to the transmission plant built by Toyota Kirloskar that had been opened, the Finance Minister said, "India will shine if we have more workers committed to economic progress." During the three months to June this financial year, overall industrial growth was 7.5 per cent. Some broad sub-sectors had even grown at 10 per cent. Six core sectors — electricity, coal, cement, steel, crude oil and petroleum — had grown at 5.4 per cent. Exports had grown 28 per cent and imports 30 per cent. On foreign direct investment, he said "India can absorb two to three times the current levels of FDI ... the Left parties have some reservations. I am confident I can talk to them and convince them."

"There is one India, ready to take its place among the developed nations, and another where people still have Third World standards of living. We will bridge this gap not by subsidies but by investment ... not by rhetoric but by action ... not by isolating ourselves into an island but by forging partnerships with the rest of the world," he said.

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