Economic Situation

Current Economic Situation
6. A few days ago the Economic Survey, 1997-98 was tabled in Parliament. It provides a comprehensive analysis of the economy's performance during 1997-98. In my interim budget speech I had already drawn attention to some disquieting trends: overall economic growth slowed to 5 per cent in 1997-98; agricultural growth was negative, with foodgrain production dropping to194 million tonnes from199 million tonnes in the previous year; growth of industrial production slackened to 4.2 per cent; export performance was weak for a second successive year, recording growth in dollar terms of less than 3 per cent; the fiscal deficit worsened to 6.1 per cent of GDP; the capital market remained in the doldrums and infrastructure bottlenecks continued to plague the economy. But I am not daunted by the situation. Only the weak are tamed by adversity, the strong rise above them.