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According to the Planning Commission, adequate measures to boost public investment in construction may propel India's GDP growth rate to 7.4 per cent in 2009-10, even as international agencies have lowered their projections for the country's growth.
Planning Commission has submitted a report to the Prime Minister Manmohan Singh which says,"If a major effort (in addition to stimulus packages) to further increase public investment in construction can be mounted, we can have a higher growth rate... A Rs 50,000-crore absorption, i.e. 1 per cent of GDP can, raise the growth rate by up to 2.2 percentage point."
The report also said that if the country succeeds in achieving even half of the figures, growth rate for 2009-10 could be 7.4 per cent.
It is also mentioned in the report that the economy, otherwise, is likely to expand by 6.3 per cent in the current fiscal, aided by stimulus packages and UPA's flagship programme National Rural Employment Guarantee Scheme.
The World Bank is however expecting a growth rate of 4 per cent for India for the fiscal year 2009-10, while according to the Organisation for Economic Cooperation and Development it would be 4.3 per cent. IMF projects it to be 5.1 per cent. The Economic Times
April 5, 2009
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