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Need to tap domestic sources of growth: Raghuram Rajan

Dec 13 2012, 6:36am CST | by Luigi Lugmayr

New Delhi, Dec 13 (IANS) India's Chief Economic Advisor Raghuram Rajan Thursday stressed the need to tap domestic sources of growth as the economy will continue to be influenced by developments overseas.

New Delhi, Dec 13 — India's Chief Economic Advisor Raghuram Rajan Thursday stressed the need to tap domestic sources of growth as the economy will continue to be influenced by developments overseas.

"Clearly India will be influenced by growth constraints in Europe. After all our exports are part of the production. So If exports are declining as it has been recently, it will obviously going to have influence on the economy," he said.

The country's exports in November contracted 4.17 per cent year-on-year for the seventh month in a row to $ 22.2 billion, owing to falling demand in the US and European markets.

Rajan said economic growth seemed to be stabilising and efforts should be made to strengthen the recovery process.

"Hopefully, economic growth is stabilising. Certainly every move that government is trying to make (will) help to strengthen growth."

Rajan was speaking at a briefing to announce the international conference on 'reviving growth', being organised here by the department of economic affairs of the finance ministry Dec 14-21.

On the factory output data released Wednesday, Rajan said: "We should not be overtly influenced by one number because issues of base effect are there... We should take it as part of a pattern."

India's Index of Industrial Production (IIP) grew at a faster-than-expected 8.2 percent in October. It had contracted 5 percent in the year-ago period.

IANS

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Luigi Lugmayr
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

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Quote:
"The BCCI will take stringent measures. It will cooperate with the Delhi Police. I wish to congratulate the Delhi Police and Delhi Police Commissioner Neeraj Kumar for exposing this (spot fixing)"