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Indian economy to grow, UPA pro farmer: Chidambaram

Chennai, July 28 () : India’s economy growth was next to China and UPA was pro-farmer by increasing support prices, said Finance Minister P. Chidambaram yesterday at two separate functions held in his constituency Sivaganga.

Indian Bank and Oriental Bank of Commerce opened their branches at two different towns in the district.

Chidambaram defending the economic condition of the nation said that in Asia we had company. China’s growth rate declined and correspondingly India growth rate came from 7% to 5%. All the same he hoped to increase the growth rate from 5 %to 6%.

Planning Commission Montek and many rating agencies have said that the second half we will witness further decline. Chidambaram told the gathering that consisted mainly of banking officials and media that Europe was facing a slowdown and Brazil and Mexico were behind us and asked as to how India’s economy could be insulated from global situation.

Incidentally, Sivaganga gets the distinction of having the Indian Bank’s 2010th branch. He reeled out the price of crude oil ($108) which made petrol and diesel costly. He called upon the public to be confident and apply for loans and put it in small industries, farms and houses.

Women self-help groups should take bold steps to obtain loans. Steps are being taken to find out gas and oil within the country to cut down oil imports.

TM Bhasin, CMD Indian Bank welcomed the Minister. While inaugurating the Oriental Bank of Commerce branch, Chidambaram saluted the farmers who made it possible to export wheat. He reeled out the support prices the government was giving to paddy and cotton. The support price is Rs 1350 for a quintal and previously it was Rs 650.

Rs 2 lakh crore is set apart for farm loans. Previously it was Rs 60,000 crore. The interest rate is 7% and those who pay on time need to pay 4%. Food grain stock stood at 2.60 lakh crore tonnes.