Govt taking steps to revive economy: Pranab

"Both global and domestic factors have affected our growth. We need to address the impact of both. My government has responded to the situation by taking several measures to revive investment activity and investor sentiment," he said in his address to the joint sitting of Parliament at the beginning of the Budget Session.

"The economic growth during the 2012-13 is expected to fall to a decade low level of 5 percent. It was 6.2 percent in the previous fiscal. The past year has been a very difficult one for the global economy ...It has been a difficult year for India also."

 "The Indian economy is currently experiencing slower growth. The real GDP grew by 5.4 percent in the first half of the current fiscal year. This is significantly lower than the average of around 8 percent in the last decade," Mukherjee said, adding the government is taking steps to deal with factors responsible for the slowdown.

Also read: Experts discuss roadmap for fixing fiscal deficit

On concerns over fiscal prudence, Mukherjee said, the government has announced a roadmap for fiscal consolidation and would contain the fiscal deficit to 5.3 percent of the GDP in the current financial year. Referring to the issue of price rise, he said "inflation is easing gradually, it is still a problem ... There has been a moderation in core inflation and recovery in growth is likely".

The inflation based on Wholesale Price Index (WPI) plummeted to a three year low of 6.62 percent in January. The retail inflation, however continued to remain in double digit. The government, he added, is also working with states to reach a consensus on Goods and Services Tax (GST), which will streamline indirect taxation system.