Deficient monsoon is likely to pull down the economic growth in the current fiscal to about six per cent, from 6.5 per cent a year ago, the Planning Commission said.
"If we factor in that agriculture which would not be strong ... (growth) would be closer to 6 per cent. I don't think we have sufficiently strong industrial turn around yet," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters.
In case of 12th Five-Year Plan (2012-17), he said the annual average economic growth could be around 8.2 per cent as against the earlier estimate of 9 per cent envisaged in the Approach Paper to the policy document.
As regards 2012-13, the Reserve Bank has recently lowered the growth projection to 6.5 per cent from 7.3 per cent in the wake of deficient monsoon and global economic problems. On whether special schemes were needed to tide over the drought like situation, Ahluwalia said, "I don't think you need an incentive. These are all issues that state governments have to tackle. They are usually very keen to take corrective measures".
He further said that rural employment guarantee scheme MNREGA can deal with the problem of unemployment in rural areas. "The growth rate in agriculture will be lower and that means that certain amount of income and employment stress in rural areas will have to be countered. In that perspective the existence of the MNREGA scheme provides a kind of automatic stabliser. If people need work because of the drought, they will get work through MNREGA", Ahluwalia said.
Even as cases of financial fraud are dotting cyber space across the world, Indians seem more forthcoming in giving out their personal information for personalised services.
Footwear major Woodland, owned by the Aero Group, is looking to re-position its sub-brand 'Woods' in the luxury footwear segment, focusing primarily on women's footwear, a top company official said Friday.
Global ratings agency Standard & Poor's said its outlook on India remained negative and there was a one-in-three likelihood of a downgrade within the next 12 months.
US industrial production, an indicator of the output of mines, factories and utilities, dropped 0.5 percent in April, US Federal Reserve reported.
Two Indian IT firms are feeling the heat of the recent $ 45 million global ATM heist.
Pleading guilty to 'felony charges' relating distribution of adulterated drugs made at two India units, the US subsidiary of Ranbaxy agreed to pay USD 500 million.
from Hindustan Times
An Indian-origin board member of the influential UK India Business Council said he is rethinking the role of off-shore tax havens in the current economic climate.