(a) whether some global banking giants like `Goldman Sachs;
have advocated the necessity to scale down the country`s growth
rate from 7.6 per cent this fiscal;
(b) if so, the reaction of the Government thereto; and
(c) the efforts made by the Government of India to improve
the country`s economy?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): Goldman Sachs in its Asia Economics Flash (December 2011) has
placed GDP growth at 7.2 per cent in fiscal year 2012-13. The Economic Survey
2011-12 has projected the growth rate of real GDP for 2012-13 to be 7.6 (+/-0.25)
per cent. The government is aware of projections for GDP growth rate made by
different agencies, which are taken note of in policy formulation.
(c): The Government has announced a number of policy measures in the Union
Budget 2012-13. Some of the measures are focused on creating conditions for
rapid revival of high growth in private investment and addressing supply
bottlenecks in agriculture, energy and transport sectors and to improve
investment environment which are expected to improve the economic activity
and growth during the year. Steps proposed to promote higher growth in
agriculture include raising fund allocation, raising credit for agriculture
to Rs. 575,000 crore-in 2012-13, higher allocation for irrigation projects,
etc. Encouraging investment in infrastructure by raising limits for Fll in
the long-term, raising limits for external commercial borrowings, simplifying
the process of issuing Initial Public Offers (IPOs), larger amount of tax-free
bonds for financing infrastructure, etc..