Factors leading to India slowdown bottomed out: Mukherjee

NEW DELHI Thu May 31, 2012 3:40pm IST

Finance Minister Pranab Mukherjee listens to a question during a news conference in New Delhi May 27, 2009. REUTERS/B Mathur/Files

Finance Minister Pranab Mukherjee listens to a question during a news conference in New Delhi May 27, 2009.

Credit: Reuters/B Mathur/Files

Related Topics

NEW DELHI (Reuters) - Most of the factors that led to India's growth slowdown have bottomed out, Finance Minister Pranab Mukherjee said in a statement on Thursday, after the economy grew at its weakest pace in nine years in the March quarter.

"Among the factors that have contributed to the slowdown are the tight monetary policy that led to a significant rise in interest costs and the weak global sentiments that affected growth in domestic private investment ... have bottomed out," Mukherjee said.

Annual economic growth slumped to 5.3 percent in the March quarter as the manufacturing sector contracted and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.

(Reporting by Arup Roychoudhury; Editing by Ranjit Gangadharan)

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage