New Delhi: Finance Minister Pranab Mukherjee on Tuesday said economy is witnessing certain deteriorating trends like rising subsidy bill and falling rupee, but the country has resilience to overcome the crisis.
    
"I appreciate concerns about certain deteriorating trends ... question has been raised whether we have entered into recession. Have we entered into a phase where the Indian economy is going to be derailed ...No Finance Minister will find it comfortable when rupee is declining," he said in the Rajya Sabha.
    
Replying to the debate on Appropriation Bill seeking Parliamentary approval for additional Rs 60,180 crore for fiscal 2011-12, Mukherjee said recession in Europe was a reality.
    
"We are concerned because we cannot remain insulated from the adverse impact of that... if it (European crisis) extends to a large economy any amount of bailout package will not be sufficient and worldwide depression will take place," he said.
    
The Opposition had expressed worries over deteriorating economic situation with industrial production falling by 5.1 percent in October and rupee crashing to all-time low of 53.24 to a dollar.
    
Mukherjee said because of the high international prices, fertiliser subsidy may exceed even Rs 90,000 crore this fiscal against the budget projections of Rs 40,000 crore.
    
However, he said that the economy has "the capacity and resilience to overcome the crisis", as was shown during 2008 financial turmoil in the world.
    
Later, the Upper House returned the Appropriation Bill. As the Lok Sabha has already passed it, the government has been accorded Parliamentary nod to withdraw extra from the exchequer.

Mukherjee said political parties have to show togetherness and are working together "because there are certain areas where partisan politics does not help us."
    
Lack of political consensus is blocking several key economic reforms like opening up of the pension sector and increase in the foreign investment limit for insurance companies.
    
There are also political differences with regard to introduction of the Goods and Services tax, considered to be a major tax reform.
    
Mukherjee said the government will try to build up consensus and reduce areas of disagreement.
    
Wherever there are areas of disagreement, "we should give time but we should not lose track of it," he said, adding the Parliament should not be converted into a demonstrative platform.
    
Mukherjee said it is the collective political wisdom which can deal with the worsening economic situation.

Agencies