(a) Whether the United Nations Trade and Development Report has
pointed out that only India and China have demonstrated a reversal
in the global economy in the Asian region;
(b) if so, the other main points mentioned in the report;
(c) whether according to the report, the growth in the world economy
slowed down sharply the year 2001;
(d) if so, whether the Union Government have examined this report; and
(e) if so, the steps being taken in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS ( SHRI ANANT G. GEETE )
(a),(b)&(c) : Yes Sir. The United Nations Trade and Development
Report (2002) mentions that only China and India, two large and
relatively closed economies, were by and large immune from the
downward pressure of world markets. The Report also mentions that
growth in the world economy slowed sharply in 2001; performance
was week in all three leading economic regions (viz the United
States, Japan and European Union) in the developed world, and the
spillover effects on developing countries were much stronger than
in previous downturns in the 1990s. It also mentions that several
emerging-market economies in East Asia and Latin America entered
into recession.
(d)&(e) : Observations made by various multilateral organisations
and others are kept in view by the Government in formulation of
appropriate economic policies and measures. The Government has
already taken several steps to promote domestic and foreign
investment, which amongst others include liberalization of policies
in trade, industry, infrastructure, financial sectors,
rationalization and reduction of both direct and indirect
taxes, reduction of interest rates, tax holidays for investment
in infrastructure and backward areas, combined with sound-macro
economic policies so as to stimulate economic growth with stability
in prices and exchange rates.