India to see a robust growth, GDP growth at 7.5% for 2016-17
The Ministry of Finance was confident about India’s growth rate. Going by advanced estimates for 2015-16, the Ministry on Tuesday added, India’s Gross Domestic Product (GDP) is expected to grow at 7.5% in the coming year. “Despite uncertainties in the global economy, Indian economy stands out as a haven of macroeconomic stability, resilience and optimism and can be expected to register GDP growth that could be in the range of 7-7.75% in the coming year,” Jayant Sinha, Minister of State for Finance, informed Rajya Sabha on Tuesday. While the Central Statistics Office’s (CSO) advanced estimates projected a GDP growth (at constant 2011-12 market prices) at a range of 7.6% for 2015-16, the country’s ‘fiscal deficit as a ratio of GDP’ for FY’16 stands at 3.9% according to the revised estimates. As per Budget Estimates the fiscal deficit in relation to total expenditure and non-debt receipts has been between Rs.5.11 lakh crore to Rs. 5.35 lakh crore during 2014-15 and 2016-17. Meanwhile, the subsidies bill continued to remain between Rs.2.50 lakh crore to Rs.2.58 lakh crore in the same period. According to the Ministry of Finance, the fixed investment in the corporate sector has gone up in 2014-15 at a rate of 12.3% of GDP from 11.7% in 2013-14 (the latest available data), despite indications of constraints like stressed assets. Referring to the CRISIL-ASSOCHAM joint report on infrastructure financing in the country, Sinha said our country needs Rs.31 lakh crore infrastructure investment by 2020, with 70% of the same to be allocated in power, roads and urban development. As per his estimates, 70% of the infra spending would be met through debt while the remaining 30% would be through equity. “Apart from public investment, the government has taken steps to mobilise other sources of investment funds through establishment of Infrastructure Debt Funds, Real Estate/Infrastructure Business Trusts (REITs/InvITs), relaxation in External Commercial Borrowing (ECB) and Foreign Direct Investment (FDI) norms, among others,” Sinha added.
March 09, 2016 | 05:10pm IST
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