In the current year, the CSO has estimated growth at 5 per cent while the RBI has estimated growth at 5.5 per cent. It will be below India’s potential growth rate of 8 per cent. Getting back to that growth rate is the challenge that faces the country. This was stated by the Union Finance Minister Shri P. Chidambaram while presenting the General Budget 2013-14 in Lok Sabha today. By setting the context at the very outset of his Budget speech, Shri Chidambaram said that global economic growth slowed from 3.9 per cent in 2011 to 3.2 per cent in 2012. India is part of the global economy and country’s exports and imports amount to 43 percent of GDP and two way external sector transactions have risen to 108 per cent of GDP. Stating that India cannot remain unaffected by what happens in the rest of the world, he said India’s economy too has slowed after 2010-11.

He, however, pointed out that ‘even now, of the large countries of the world, only China and Indonesia are growing faster than India in 2012-13’. The Finance Minister said the average growth rate for the 11th Plan period was 8 per cent, the highest ever in any Plan period.

Shri Chidambaram said although there are examples of States growing at a fast rate, but leaving behind women, the Scheduled Castes, the Scheduled Tribes, the Minorities and some Backward Classes. The UPA does not accept that model. The Government believes in inclusive development, with emphasis on improving human development indicators, he added.

DSM/MG/DP/17

(Release ID :92721)

Inclusive development: policy will combine restoring higher growth with targeted measures to improve human development and social inclusion. Fiscal policy emphasises restoring higher economic growth to the country's potential while prioritising inclusive development. The Budget frames the challenge as accelerating growth from recent subdued rates amid global slowdown and substantial external sector exposure, and directs policy to combine growth-enhancing measures with targeted improvements in human development indicators so that disadvantaged groups are not left behind.