Stimulate domestic demand to strengthen Indian economy: Pranab

Finance Minister Pranab Mukherjee has said that the basic strategy to bring the country's economy back on track has to be to stimulate domestic demand. He was addressing concerns of industry and credit rating agencies over the current turmoil in the sector.

On the occasion Mukherjee said that the basic strategy should be to stimulate the domestic demand ...we are competent enough to rise to the task of meeting grave challenges.

Addressing a seminar organized by industry lobby Associated Chambers of Commerce and Industry (Assocham) ,he said that the country has the resilience to face grave challenges.

As the finance minister, I cannot ignore the ground reality, apprehensions of Indian industry and credit rating agencies. The government was taking due note of the concerns raised by the rating agencies, he added.

It is noted that global rating agency Standard and Poor's has said that India could become the first of the BRICS - Brazil, Russia, India, China, South Africa - economies to lose its investment-grade status.

(With inputs from IANS)