GDP growth rate disappointing: FM

There was 7.9 increase in investments in Q1,compared to 0.4 in previous period.

The government on Tuesday expressed disappointment over the slowdown in the country8217;s GDP growth rate and said hard work is needed by all sections,including industry and farmers,to ensure inclusive growth,keeping in mind uncertainty over the global economy and monsoon.

8220;It is no doubt disappointing,8221; Finance Minister Pranab Mukherjee said while commenting on GDP data for the April-June quarter,which showed that growth of the country8217;s economy slowed down to 7.7 per cent in the first quarter of FY8217;12 from 8.8 per cent in the corresponding year-ago period.

He said there was no room for complacency and everyone,including the government,industry and farming community,will have work hard.

8220;There is no room for complacency. We shall have to work very hard 8212; government,industry 8212; and I am confident that our workers and farmers would make their contribution in ensuring growth with inclusion,8221; he said,adding that one of the important ingredients is creation of more jobs.

Expressing hope that the growth rate would pick up again,Mukherjee said,8221;We shall have to keep in mind that there are still some areas of uncertainty 8212; uncertainty in global scenario,uncertainty,of course monsoon is not yet over,last leg is yet to be over.8221; While the GDP growth figure is disappointing,Mukherjee said there was a 8220;silver lining8221; to the country8217;s economic performance,as 27.7 million jobs were created between 2005 and 2010.

Furthermore,there was 7.9 per cent year-on-year increase in overall investments during the first quarter this fiscal,compared to a 0.4 per cent rise in the corresponding year-ago period,which is encouraging,he said.

Mukherjee said he was expecting a higher growth rate in the first quarter,but given various factors 8212; including the overall international scenario and the muted recovery in Europe and the US 8212; the situation in India is 8220;not that much disappointing8221;.

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He hoped that the GDP growth rate would recover by the end of the fiscal,but refused to project any figure.

8220;When the final figures for year will be available,there may be a recovery. Of course I am not going to just now make any projections what would be the final figures for the

year,8221; he said. Referring to the growth in employment opportunities,Mukherjee said those 8220;propagating8221; the view that this was jobless growth are wrong.

8220;Is not absolutely correct. They are wrong,8221; he said. However,at the same time,the Finance Minister said there should be more growth in employment generation.