Economy expected to bounce back: G K Vasan

Chennai: Government has responded to the slide in the growth rate by formulating an action plan to spur the economy which is expected to bounce back and resume its high growth trajectory, Shipping Minister G K Vasan said today. "Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5 per cent, which was the lowest in the last nine years," he said inaugurating the CII`s "Logistics Summit" here.

He, however, said that given the global scenario, 6.5 per cent growth rate was still commendable. "Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high or invest to spur the growth itself. We need to seize this moment", Vasan told the gathering attended by leading industrialists.

The government has responded to this "slide" and an action plan had been worked out to spur economic growth through the infrastructure sector, he said. Observing that the current situation offered a springboard from which the Indian logistics industry could take a giant leap, he said the installed logistics infrastructure was still inadequate to handle the impact of increased economic activities. The logistics infrastructure in the country needed speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.