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Government of India has initiated various measures for increased investment in agriculture, operationalisation of Fiscal Responsibility and Budget Management Act, enhanced public investment, promotion of public-private partnership for infrastructure development and liberalization of Foreign Direct Investment (FDI) policy.
Union Budget 2005-06 has proposed enhanced investment for agriculture, infrastructure, providing and facilitating investment in public goods such as roads, railways, power, seaports and airports and providing a supportive policy environment and stable tax policies for investment in services sectors. These measures are expected to result in increased investment to achieve higher growth.
While comparable disaggregated information on infrastructure in respect of China and East Asia are not available, it is seen that the rates of investment (gross capital formation as per cent of gross domestic product at current market prices), in India are lower as compared with China and some Asian countries. The lower rate of investment in India is mainly on account of lower rate of savings.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question by Shri Madhu Goud Vaskhi and Shri K.S. Rao in Lok Sabha today.
BSC/BY/GN-138/05
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