New Delhi: The worst is over for the Indian economy which has started responding to the government’s different stimulus packages and country’s growth would pick up momentum in the last two months of this fiscal, commerce and industry minister Kamal Nath said.
“I believe the worst is over,” Nath said adding that the last two months of the current fiscal would be much better in terms of growth.
The Indian economy grew by 5.3% in the third quarter, a low of over five years, against a whopping 8.9% a year ago, as agriculture and manufacturing output contracted.
Farm sector contracted by 2.2% while manufacturing shrank by 0.2%.
The April-December growth works out to 6.9% against 7.1% shown in the government estimates.
Nath said the government is aware of the sluggish growth in the economy during the October-December quarter and that is why it announced the stimulus package.
He said the government took steps to address the issue of sluggish growth in the economy more evident in the third quarter.
“We were seized...we did not know the figures but certainly we were seized that there is a sharp decline, that is why we did announce a stimulus package,” said Nath adding that the measures have started yeilding results.
“If you see January and November figures of auto, cement, steel there is a big jump,” he pointed out.
In less then three months since December the government has announced three stimulus packages reducing excise duty, service tax and providing more funds for the infrastructure sector.
Export sector employing over 150 million people has taken the worst hit from recession in Europe and the US. After showing an impressive growth in the first half the fiscal, overseas shipments have started contracting from October onward.