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India to announce measures to boost economy

Jun 24 2012 10:27 Sapa-AFP

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New Delhi - India plans to unveil new measures on Monday to boost the economy, Finance Minister Pranab Mukherjee said Saturday, a day after the rupee touched a new record low against the US dollar.

The rupee fell to a record low of 57.32 against the dollar for the first time Friday, as global uncertainty pushed investors to the safe-haven US currency.

"These are no doubts of signs of weakness in the Indian economy. I am concerned but not depressed," Mukherjee told reporters in eastern city of Kolkata.

"We will be able to take certain measures, which will be announced on Monday, which will improve the market condition."

Mukherjee said the government had discussed the economic situation with the central bank governor on Friday.

He said at a time when the global economy is in turmoil, then no country can expect that there will be pocket of development and particularly in a large economy like India.

Foreign corporate confidence in Asia's third largest economy is low, due to new restrictive tax policies and a perception of government paralysis in enacting further reforms.

The rupee has been one of the hardest-hit currencies in Asia, reflecting investor concerns about India's economy, which is being buffeted by high inflation and slow growth.

The economy grew just 5.3% in January to March, its slowest quarterly expansion in nine years.

india  |  economy
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