Finance minister Pranab Mukherjee on June 23, 2012 said that the Indian economy is now showing signs of weakness. The minister said that it is now all set to announce certain measures in consultation with the Reserve Bank of India (RBI) on June 25, 2012 which would help in improving the market conditions.
Mukherjee, while talking to the reporters said that on June 22, the Department of Economic Affairs had consulted with RBI Governor D Subbarao, who is positive about the measures to be taken in this issue. The minister said, “The steps we have taken… And we will be able to take certain measures to be announced on Monday which will improve the market condition”.
However, it is still not clear if the announcement will come from the RBI or the Finance Ministry, especially after Mukherjee’s interaction with the reporters where he said that he would demitting his office in June 24 to file papers for the presidential elections as a UPA nominee. The industry officials expressed disappointment with the RBI’s stand of keeping the lending rates unchanged and not taking measures to stimulate the economy.
Mukherjee said that there is a pressure on the economy and depreciation of Rupee and also expressed that he is concerned about the matter but not depressed.