Source: Indian Government
Despite the global financial crisis, which began in 2007 impacting most emerging market economies, 7.1 per cent rate of GDP growth in the current year makes India the second fastest growing economy in the world. The fallout of global slow down on Indian economy were countered with fiscal stimulus packages announced in December 2008 and January 2009 providing tax relief to boost demand and increasing expenditure on public projects. The Government has accorded approval to 37 infrastructure projects worth Rs. 70,000 crores from August 2008 to January 2009 alone. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha today.
He further stated that under the Public Private Partnership (PPP) mode, 54 central sector infrastructure projects with a project cost of Rs. 67,700 crore were given in principal or final approval and 23 projects amounting to Rs. 27,900 crore approved for viability gap funding in 2008-09. A record US dollar 32.4 billion FDI received in 2007-08 and notwithstanding financial uncertainty and slow down, FDI inflows during April-December 2008 were US dollars 23.3 billion recording a growth of 45 per cent over the same period in 2007.