‘A turnaround in the Indian economy can be expected by end of Q3’

Font Size

Print

Feedback

Email

Discuss

Related Articles

Column : Dialling into tax troubleColumn : A post-recession exit strategy -IColumn : In crisis, wear your balance sheetColumn : The problem with spending

: The initial reactions have not been very satisfactory?

One Budget speech won’t address all the problems the economy faces. In the last one month, there has been a lot of hype. I have provided necessary relief to each sector. We have also provided support wherever needed.

What were this Budget’s thrust areas?

The Budget is based on mid-term projections. We have given a boost to rural infrastructure. Enhancements have been provided for social sectors. We have given a thrust to infrastructure, where we have increased investment in comparison with the last Budget. We have abolished the fringe-benefit tax, which was a long-pending demand of industry. This Budget would also benefit exporters to a great extent.

How do we get back to a 9% growth rate?

I want to create fiscal space and I am expecting to have demand-led growth. I could have been more conservative in this Budget, but we are working to restore the economy to a growth rate of 9%.

What are your growth expectations at the end of this financial year?

India ’s growth rate at the end of the financial year would not be less than 7%. My target, though, will be 9%.

Do you think that a turnaround will come in the economy by the end of the third quarter?

After the financial slowdown, things have been improving. A turnaround in the Indian economy can be expected by the end of the third quarter.

You have decided to set up an expert group on petroleum pricing?

There has been uncertainty in oil prices, with large-scale fluctuations. In 2009, subsidies on oil increased substantially. So, I want the best method to ensure price fluctuations are avoided.

You have not elaborated much on disinvestment in your Budget. Why?

Disinvestments will be done. As and when it takes place, policies can be made.