Booster Dose to Economy: Govt to Pump In Rs. 2.11 Lakh Crore in Public Sector Banks
NEW DELHI: While asserting that macro-economic fundamentals remain strong and the GDP is poised to clock an impressive growth rate, Union Finance Minister Arun Jaitley on Tuesday announced an ``unprecedented'' infusion of Rs. 2.11 lakh crore in public sector banks to give a boost to lending.
Another major announcement made by Mr. Jaitley was that 83,677 km of highways would be built over the next five years to "create more jobs, more growth.''
Addressing a press conference here, Mr. Jaitley said the Modi government has decided upon a series of steps to sustain growth momentum in the country as India's economy was the fastest growing in the world in the past three years.
Mr Jaitley, backed by a team of top Finance Ministry officials, said that a comprehensive review of the economy was undertaken by the government in which Prime Minister Narendra Modi was also present. It was decided to chart out the road ahead, fill the gaps to boost the economy and keep building up on rapid growth and job creation.
Top officials said in their presentation that inflation has been under five per cent and current account deficit less than 2 per cent over the past three years. Forex Reserve built up is also topping $400 billion.
The GDP growth is also poised for take off and has been around 7.5 per cent in the last three years. The IMF forecast is also said to be favourable. "The real GDP growth average is 7.5% in the last three years," said Subhash C Garg, Economic Affairs Secretary. He said that that a number of indicators show "the worst is over and we are now back on the path to a high rate of growth in the next many quarters to come.