“We expect some bottoming out of this process (slowdown) over the course of the year,” RBI deputy governor Subir Gokarn said, adding that a number of other data is also showing signs of slowdown in manufacturing
Bangalore: Unfazed by 3.5% decline in industrial output in March, the Reserve Bank of India on Friday exuded confidence that the current fiscal will witness mild recovery in the economic growth, reports PTI.
“Our outlook for the year 2012-13 is for a mild recovery in growth,” RBI deputy governor Subir Gokarn said at a CII event here.
The RBI in its annual monetary policy statement had projected an economic growth of 7.5% in the current fiscal. This would be higher than 6.9% estimated in 2011-12 fiscal.
Reflecting investment deficit, industrial production fell 3.5% in March, for the first time in five months. The factory output, as measured by the Index of Industrial Production (IIP) for March, 2012, compares with an impressive 9.4% growth a year ago.
“We expect some bottoming out of this process (slowdown) over the course of the year,” Mr Gokarn said, adding that a number of other data is also showing signs of slowdown in manufacturing.
The manufacturing segment which accounts for 75% of the IIP, contracted by 4.4% on slackening exports and poor demand resulting from high interest cost of raw material and borrowing. The sector had shown an 11% growth a year ago.
“We have to live with the possibility that global slowdown determined by the oil prices, capital flows and demand conditions will remain challenging for time to come.
However, the good news is domestic growth is balancing and stabilising,” he said.
Mr Gokarn further said that the rising oil prices is a cause of concern and measures should be taken to reduce subsidies.
Crude oil prices have been rising due to geo-political reasons, including the Iran situation. The prices had touched a high of $125 a barrel in March although it has receded around $113 a barrel now. India imports about 80% of its crude oil requirements.
Expressing concern about food inflation, especially the price rise in protein-based items which is “showing signs of rising”, Mr Gokarn said it was important to step up supply of these items.
He said that whether RBI will lower rates in its 18th June policy review would depend on the growth-inflation balance.
To a query on whether the volatility of rupee would continue, Mr Gokarn said: “We are trying to curb it and we are using the instruments that we think are appropriate in any given situation to curb it and we will continue to do that”.
The rupee on Friday fell by 21 paise to close at Rs 53.63 against dollar. This is the sixth straight week of loss for the domestic currency.
To ensure more availability of dollars, the RBI had on Thursday asked exporters to sell 50% of their foreign exchange holdings.
According to the Trinamool Congress chief one political party, in its meeting deliberated on advancing the Lok Sabha election to 2013
Kolkata: Trinamool Congress supremo Mamata Banerjee on Friday claimed she has information that a polical party in Delhi had held a meeting to advance the Lok Sabha poll to 2013 and asked her partymen to be ready for it, reports PTI.
"Anyday, we can face election. We have to remain ready. One party has held a meeting to hold the election in advance, though my information may not be correct," Ms Banerjee told a meeting of Trinamool Congress without naming the party.
"I have got the information. I am not going into details as to who were at the meeting. They deliberated on advancing the Lok Sabha election to 2013," she said.
Mr Banerjee turned to her close aide and Railway Minister and said "what Mukul? Wasn't the the meeting held?
Subrata Baksi, MP, was re-elected as the state president of Trinamool Congress at the meeting.
Asking her partymen to behave, she said "we are in the government. We should not do anything so that people misunderstand us."
Warning her partymen not to indulge in groupism, she said if any MLA or MP does not take care of the people "we do not require them."
The HRD minister said he would not allow Dr Ambedkar to be "disparaged" as the architect of Indian Constitution did not belong to any particular segment but entire nation
New Delhi: A cartoon on Dr BR Ambedkar in NCERT textbooks led to pandemonium in Parliament on Friday forcing HRD Minister Kapil Sibal to apologise with an assertion that these "objectionable" caricatures were being withdrawn and other "concrete" action taken, reports PTI.
Responding to concerns expressed by members in both Lok Sabha and Rajya Sabha, Mr Sibal said the government will also examine whether any criminal offence was made out against those who drew or included Ambedkar's cartoon in the textbook.
Members of BSP, SP, RJD, AIADMK and CPI and Viduthalai Chiruthaigal Katchi (VCK) created uproar in both Houses, demanding action against those responsible for the cartoon.
The turmoil led to two adjournments of the Lok Sabha before the final one for the day at around 2.10pm. The Rajya Sabha also was also adjourned twice till 2.30pm when Mr Sibal made a statement.
Admitting that cartoon on Dr Ambedkar in the textbook was "objectionable" as were many other such caricatures, he said he had already ordered their removal. "The content is not appropriate...It is being withdrawn... This morning I called the NCERT Director and told him that there should be no further distribution of the books," Mr Sibal told the Rajya Sabha.
He said "concrete" steps are being taken to ensure that no such thing happens in the future.
Noting that the cartoon was incorporated in the textbook, not by any official of the NCERT, but by a committee of academics, he said they would no more be associated with such work.
Outside Parliament, Mr Sibal told reporters that he was "willing to personally apologise" although "I was not the minister at that time in 2006. I was not involved in the publication of the books."
When I got information in the beginning of April, I wrote a letter to NCERT that such a cartoon should not be there as it is objectionable... On 26 April 2012, I wrote to NCERT stating that it is considered advisable to withdraw the cartoon. After this, they set up a Committee to examine this," Mr Sibal said.
"Then I called all textbooks and found there are many other such cartoons about other leaders which are objectionable. Then I decided to set up a Committee to look into all textbooks," the HRD Minister said.
He said there was no question of anybody trying to malign Dr Ambedkar or anybody trying to make fun of him because that "I think will be against the secular ethos of our country".
Mr Sibal said he would not allow Dr Ambedkar to be "disparaged" as the architect of Indian Constitution did not belong to any particular segment but entire nation.
When asked by BSP member Mayawati as to what action the Government was taking against those responsible for inclusion of Ambedkar cartoon in textbooks and by when would action be taken, Sibal said, "Nothing objectionable about Babasaheb Ambedkar will be allowed and action will be taken so that this is not repeated."
Earlier, members of BSP, SP, RJD, AIADMK, CPI and VCK, carrying photocopies of the cartoon, rushed into the Well in the Lok Sabha and Rajya Sabha, forcing two adjournments of both Houses before lunch.
In the Lok Sabha, VCK member Thirumaa Valavan Thol raised the issue and demanded Mr Sibal's resignation. He was soon joined by members of other parties. They alleged it was an insult to Dr Ambedkar and demanded action.