New Delhi: Concerned over the sign of slowdown in the economy, Prime Minister Manmohan Singh will convene a meeting of Ministry of Finance and Planning Commission on June 9.

The government will chalk out plans to overcome the poor growth in the economy. The Centre will consider the proposal of approving foreign direct investment in some of the industries or raising the existing limit of FDI including retail sector.

According to sources, “A meeting has already been proposed to give a final touch to the upcoming five-year plan but after seeing the latest figures of economic growth the agenda of the meeting has been altered.”

The first priority of the government is to increase the gross domestic product (GDP) for the 2011-12 fiscal. The slow growth in core industry has strengthened fears that economic growth rate may fall further.

According to the latest data released on Tuesday the economic growth rate in the last quarter of 2010-11 is much below than the official estimates. The government is concerned over the steady decline in the FDI.

In the meeting, there may be an agreement among the Cabinet members for an approval over FDI in the retail sector. As the government believes that unless an approval is given for FDI in retail sector it will difficult to check inflation.

The government might give a green signal to its earlier announcement of raising FDI cap from 26 percent to 49 percent in the insurance sector.

 

(JPN/Bureau)