Indian economy will soon be back on high growth path: Pranab Mukherjee

The present downturn in the Indian economy is only a temporary aberration and the economy will soon be back on the high growth trajectory, finance minister Pranab Mukherjee said today.

Addressing the fourth meeting of the consultative committee attached to his ministry during the current fiscal, yesterday, the finance minister said the current downturn was a reflection of the global turbulence.

Mukherjee was speaking on the 'Present state of the Indian economy and roadmap for the future'.

He said the euro-zone crisis has resulted in a fall in external demand and a consequent decline in the country's exports. This combined with currency volatility has resulted in the country's current account deficit rising above desirable levels.

Mukherjee noted that the pause in the Indian growth story was brief. Food inflation has come down to 1.8 per cent while there has been a moderation in inflation in general. Savings too have gone up, he said, adding that necessary instructions have been issued to all the ministries and departments to adhere to their expenditure ceilings.

Members of the consultative committee, meanwhile, suggested measures to check flow of population from rural areas to urban centers by measures like setting up of agro-based industries in rural areas.