"It is important to recognise that our problems are not only external, but are also internal. Also, the external problems this time are quite different. This crisis (debt crisis in the Eurozone) is much deeper as it is now estimated that the Eurozone will grow at 0 per cent till 2012," said Montek Singh.
Further, focusing on the stalled projects, Singh mentioned the Rs 51,000-crore Posco Steel project in Orissa, and other multi-billion dollar projects by the Tatas, ArcelorMittal, Vedanta and others in Orissa and Jharkhand, which have been for want of environmental clearances. Additionally, many power projects are also lying untouched for want of fuel linkage.
"While the macroeconomic policy decisions will be taken in the Budget, we should sort out project implementation issues so that there will be some kind of momentum ...In the near-term, we should concentrate on implementation problems being faced by infrastructure projects," said Montek Singh.
However, believing the marginal decrease in headline inflation as a ray of hope, Singh rejoiced considered it as an indication of Reserve bank of India (RBI) pausing the rate hike.
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