NEW DELHI: "The picture is not looking rosy," the government's Chief Economic Advisor K.Basu told Parliament's finance standing committee on Friday in a blunt assessment of inflation and the economy. "About a year ago we thought inflation will come down in a year. We were wrong," Basu candidly told the committee during a discussion on price rise and depreciation of the rupee. While top finance ministry officials held onto a robust "8%-plus" growth rate for the Indian economy, financial services secretary D K Mittal said the manufacturing and mining sectors were slipping but banking has escaped major reverses so far. Finance secretary R S Gujral and other officials expressed the hope that inflation would moderate in the next few months by March, 2012, a prediction that sounded similar to others that have preceded it. Expenditure secretary R Gopal reiterated the view that rising incomes were driving up demand, but MPs asked what the government is doing to address supply constraints. Members pointed out that all rate revisions by RBI have failed to work and banks were now beginning to complain.
TOI
