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Monsoon holds key to GDP growth—Sakthivel |
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02/09/2009 |
| Mr A. Sakthivel, President of the Federation of Indian Export Organisations (Fieo), referring to the 6.1 per cent economic growth in the first quarter of April-June 2009-10, has remarked that the drought has further dented the economy. A weak monsoon will further affect the economy which is driven by rural buoyancy.
The Reserve Bank of India (RBI) data had corroborated the slowdown with a year-on-year fall in bank credit to business to 14.9 per cent from 25.8 per cent a year ago.
The net bank credit to the government, on the contrary, had increased from 12.6 per cent to 45 per cent in 2009-10 so far possibly creating an upward pressure on interest rates.
While in a slowdown phase, there is less demand stimulus, the higher interest rates may further dampen credit offtake, he opined. |
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