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Economy remains strong despite sluggish growth: Sinha

Union Finance Minister Yashwant Sinha on Friday said that despite sluggish growth during 2000-2001, the country's economy stood on a firm footing due to its "innate resilience."

Notwithstanding the sluggish growth during the year, caused mainly by a slump in the stock market and poor agricultural production, the economy is on a strong footing, Sinha told reporters in Hazaribagh, Bihar.

He said as against the projected overall growth rate of six per cent, India could achieve a growth rate of 5.2 to 5.5 per cent in 2000-2001.

The country, he said, had foreign currency reserves of $44 billion to meet any exigency, while the foodgrain stock was very good, at 60 million tonnes.

The inflation at five per cent was also satisfactory, he said.

The minister said a crashing stock market, particularly the plunging prices of information technology shares and severe drought in Chhattisgarh, Madhya Pradesh, Rajasthan and Gujarat had greatly contributed to the slowing of the growth rate.

Against the estimated agricultural production of 209 million tonnes, the actual production stood at 196 million tonnes, a shortfall of 13 million tonnes, as a result of which agriculture sector grew by a meagre 0.2 per cent, he said.

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