P.V. Narasimha Rao passes away
New Delhi: Former Prime Minister Narasimha Rao who passed away yesterday was known as the father of India's economic reforms. Prime Minister Dr Manmohan Singh who served as the Finance Minister under him today described Rao using the same words. Dr Singh said he was able to deliver as Finance Minister because of Rao's support and cooperation.

The reforms initiated between 1991-95, now form the foundation of India's booming economy. When he took over as Prime Minister after Rajiv Gandhi's death, India had less than a $1 billion of forex reserves. This was enough to sustain imports just for a week. Rao devalued the rupee, removed licensing in the private sector and allowed easy foreign investment. This enabled India to grow at more than five per cent for the first time.
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Chidambaram: Rao was the invisible hand guiding reforms
New Delhi: In his condolence message, the Finance Minister, P. Chidambaram, has described former Prime Minister P.V. Narsimha Rao as an astute political manager who, despite being just short of majority in Parliament, managed the political contradictions while steering the economic reforms.

The Finance Minister stated that Rao became the Prime Minister at a crucial moment of India's history, especially India's economic history. No other Prime Minister was confronted with an acute financial crisis such as the one that hit the country in 1991.

Chidambaram said that when the story of India's economic reforms is written, history would record that the invisible hand that guided the reform process was that of Rao.
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RBI: GDP to grow at 6-6.5 percent
Mumbai: Growth prospects of the Indian economy remain strong and the overall GDP growth for 2004-05 is expected to remain in the 6-6.5 per cent range, according to the Reserve Bank of India's (RBI) report on Currency and Finance 2003-04, released on Thursday.

The report said that the economy would get a further boost from the expected consolidation under the Fiscal Responsibility and Budget Management Act, 2003 and that adherence to the envisaged targets under the Act will release additional resources for private sector investment. This is also expected to create more jobs.

The report observed sustained growth in production and also imports of capital goods and increase in bank credit as signs of revival of investment demand. The report said that the economy has exhibited "remarkable stability" in 2004-05 despite being pounded by external shocks emanating from monsoon conditions and international oil prices. The strong growth in merchandise exports was supplemented by exports of services and buoyant remittances. The current account is expected to post a marginal surplus in 2004-05.

Foreign direct investment inflows have recorded a significant increase during the current year so far, responding to improved growth prospects as well as the ongoing liberalisation measures to attract higher FDI in critical areas such as infrastructure.
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RBI: Inflationary pressures likely to moderate
Mumbai: The uptrend in overall prices is expected to moderate in the coming months with the easing of oil prices, improved rabi crop prospects and reduction in money supply, according to the Reserve Bank of India's report on currency and finance, 2003-04.

The report, released today, said inflationary pressures are expected to moderate in the coming months, consistent with the projections made by the RBI in the mid-term review of its annual policy in October. The RBI had revised its inflation projection to around 6.5 per cent, assuming that there would be no major supply shocks and liquidity conditions remain manageable.
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