(a) whether the gap between interest rates prevailing in United
States of America and that in India has widened and if so, the details
thereof for the last three years;
(b) whether a review/study on the likely impact of such phenomenon
on the economy of the country has been made; and
(c) if so, the details thereof and reaction on the findings thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) Yes, Sir. The difference in interest rate prevailing in India and
the US has widened in the last three years. The difference between the ten
year yields of Government securities in India and US has increased from
3.2 percentage points on 4.5.2009 to 6.7 percentage points on 2.5.2012.
The interest rate in an economy is influenced by a large number of factors
including policy rates set by the Central Bank. US policy rates have
remained at 0 - 0.25 per cent in view of the slow pace of recovery and
in India policy rates were raised to control inflationary pressures.
(b) No, Sir.
(c) Does not arise.