Amid concerns of a slowdown, Union Minister for Finance Pranab Mukherjee has said the Indian economy will soon revert to a higher growth trajectory.
The present downturn is only temporary, Mukherjee said in his address at the fourth meeting of the Consultative Committee attached to the Ministry of Finance.
Earlier this month, the government lowered the GDP growth forecast to 7.5 per cent from its earlier estimate of 9 per cent for the current fiscal.
"The world economy is going through turbulent times. Due to the euro zone crisis, a downturn in external demand resulting in a slowdown in exports, currency volatility and current account deficit, among others, has also affected our economy."
He also said that necessary instructions have been issued to all ministries and departments to adhere to their expenditure limits.
On price rise, he said food inflation has come down to 1.8 per cent and there is moderation in inflation in general.
Various members of the Lok Sabha and Rajya Sabha participated in the discussions of the committee. They said efforts should be made to stop the migration of agricultural labourers from villages to cities.
Some members stated that efforts should be made to reduce agriculture's dependence on rain and enough incentives should be given to produce oilseeds and pulses indigenously.
Furthermore, they said that credit flow to agriculture should also be increased and cash subsidies should be given directly to the beneficiaries.
In addition, some members suggested there was a need to bring in FDI to give justice to farmers. The government of India should arrive at a proper mechanism in close coordination with state governments for this purpose.
The members also stated that some key sectors like power, civil aviation, health, infrastructure and telecom need to be accorded priority.