FM assures to take measures on Monday to improve Indian economic condition

Assuring to take certain measures to improve the worsening condition of Indian economy and depreciating rupee against US dollar, Finance Minister Pranab Mukherjee Saturday informed to media that on Monday Reserve Bank would announce certain measures.

'The department of Economic Affairs has consulted with RBI over various issues on economy and RBI may announce some measures on Monday', said FM Pranab to media.

He expressed his concerned over signs of weakness in the Indian economy.

"GDP is at 6.5. There is inflationary pressure; there is depreciation of rupee. There are no doubt signs of weakness in Indian economy," he said.

However he also added that he is concerned over it but not depressed as basic fundamentals are strong in Indian economy and India saw an inflow of US$ 8-billion as FII money from January to June 2012.

"When the world is in turmoil, then a large economy like India cannot stay immune", he added.

The FII inflow for the corresponding period in 2011 was negative, he said.

"This year FDI stood at 46 billion to 48 billion US dollars," Mukherjee said, adding that this was possibly his last visit to the city as Finance minister.

Pranab's assurance comes a day after the rupee fell to a record low of 57 per dollar. The rupee fell to 57.37 against the US dollar on Friday, recording this year's biggest fall of 85 paise in a day, on increased demand from oil importers.

The currency has declined over 20 per cent in the past one year and traders expect the currency to weaken further to 58 against the dollar in future.

--With Agencies Inputs--