(a) Whether the rate of investment in infrastructure was far lower
than that of China and East Asia;
(b) If so, the details and the reasons for the same; and
(c) The corrective steps taken by the Government in this regard?
(a) Whether the rate of investment in infrastructure was far lower
than that of China and East Asia;
(b) If so, the details and the reasons for the same; and
(c) The corrective steps taken by the Government in this regard?
MINISTER OF STATE (REVENUE) (SHRI S.S. PALANIMANICKAM)
(a & b): While comparable disaggregated information on infrastructure
in respect of China and East Asia are not available, it is seen that the
rates of investment (gross capital formation as per cent of gross
domestic product at current market prices), in India are lower as
compared with China and some Asian countries. The lower rate of
investment in India is mainly on account of lower rate of savings.
(c) The Government has initiated various measures for increased
investment in agriculture, operationalisation of Fiscal Responsibility
and Budget Management Act, enhanced public investment, promotion of
public-private partnership for infrastructure development and
liberalistion of Foreign Direct Investment (FDI) policy. Budget 2005-06
has proposed enhanced investment for agriculture, infrastructure,
providing and facilitating investment in public goods such as roads,
railways, power, seaports and airports and providing a supportive policy
environment and stable tax policies for investment in services sectors.
These measures are expected to result in increased investment to achieve
higher growth