Finance minister Pranab Mukherjee today said the economy is expected to do better in the remaining part of the fiscal, and asserted that there is no need to panic on rising prices as there are enough food stocks in the country. The economy grew at 6.1 per cent in the first quarter of the fiscal.

Mukherjee, who was here to campaign for the Congress for the state assembly elections, told reporters that the series of fiscal and monetary stimulus measures taken to combat the slowdown would “produce desired results”.

On the outlook for the remaining quarters of the fiscal, the minister said he “expected” the economy to perform better.

“Some indications are available. Foreign Direct Investments (FDI) have substantially increased in the first three months. Industrial production has gone up by two per cent in July,” he added.

FDI for the first three months stood at 7.02 billion, a three-fold increase from the previous quarter. Industrial production grew close to 7 per cent in July, signalling signs of recovery. The negative trend in the exports was was showing a decline, Mukherjee said.

Describing price rise as a concern for the government as well as the common mon, he, however, said there are enough food stocks in the country and there is no need to panic. “It (price rise) is a matter of supply and demand management. If state governments improve the PDS, there won’t be any shortage of essential commodities as the food stocks are adequate.”

Mukherjee said wheat and rice had a surplus of seven million tonnes and a revamped PDS in the states could ease the situation as the government had ensured adequate supply of all essential commodities including pulses.

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