GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS
UNSTARRED QUESTION NO 1058
TO BE ANSWERED ON 26.02.2009
YPHA Projected State of The Indian Economy Question.
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state:-
(a) the projected state of the Indian economy expected to be in March 2009, in terms of GDP growth rates, food prices, inflation, Reserves, fiscal deficit including below the line etc.; and
(b) what is Government’s current expectation for financial year 2009-10?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a)&(b) : As per the Advance Estimates released by Central Statistical Organisation, the Gross Domestic Product at constant prices (real GDP) is estimated to grow at 7.1 per cent for the year 2008-09. The Wholesale Price Index-based annual inflation stood at 3.92 per cent during the week-ending 7th February 2009. The annual inflation on food articles for the same period stood at 10.37 per cent. India’s foreign exchange reserves as on 13th February 2009 stood at US $249.69 billion. As per the Interim Union Budget for 2009-10, the revised estimates of fiscal deficit for the year 2008-09 is estimated at Rs.326515 crores which is 6.0 per cent of the GDP. Besides, it has been estimated that securities amounting to Rs.75942 crores and Rs. 20000 crores would be issued during the year to oil companies and fertiliser companies respectively, which together account for 1.8 per cent of the GDP.
The Government and the Reserve Bank of India (RBI) have acted to protect the economy from the adverse impact of the global economic crisis. The measures taken by the Government, inter alia, include: reduction in Cenvat/ Excise duty, measures to support exports, expansionary plan expenditure and other sector-specific measures. The RBI have taken measures like reduction in Cash Reserve Ratio, reduction in the Statutory Liquidity Ratio and significant reduction in key policy rates. These measures are expected to provide the necessary stimulus to the economy over the ensuing period and the financial year 2009-10.