Indian economy strong enough to deal with crude spike: FM

Finance minister Pranab Mukherjee tried addressing the issue of the rising crude oil prices, which have impacted Indian equity benchmarks adversely dragging them to one of the lowest levels. He said that the Indian economy has resilience to deal with the crude oil spike.

Reacting on the mounting food inflation, he said that food inflation has come down in January and the Economic survey has outlined the need to invest in the agriculture sectors. He assured that the government will take a policy action to bring boiling food prices down.

According to him, the current account deficit is another area of concern. On the positive side, he mentioned that exports have increased substantially.

“Contribution of service sector to GDP is expanding, and growth projected this year is 8.6%, while for the next year, 9% growth is achievable,” added Mukherjee.

He also mentioned that the Railway faces resource constraint on the 6th panel burden.

(Source: http://www.moneycontrol.com/news/economy/indian-economy-strong-enough-to-dealcrude-spike-fm_526142.html)