By- Correspondent | Date- August 10, 2011
With fears of another big recession surmounting the globe, Indian finance minister Pranab Mukherjee stated something which will bring back some smiles to the investors. According to him, Indian macro economy was moving in a positive direction. He also stated that the Government is positive that international commodity prices would drop, helping the government control inflation much better than what is being done now.
The finance minister maintained that Indian economic roots were strong and capable enough of meeting global challenges due to low rate of economic growth in US and the crisis in some Europe.
Although the continuously rising rate of inflation and high interest rates has made investments difficult in India, the finance minister expressed happiness over the quick recovery shown by the Indian stock market, which was much better than other Asian countries.
The finance minister however seemed to have ignored the facts that the last few days has seen only overselling in the market and all sectors, – from real estate to capital goods, financial services to automobile goods have suffered.
As it is too early to predict on the situation, analysts have claimed that Mukherjee’s words could be nothing more than a blank assurance or moral booster, something for which the finance minister has been always known for.