Budget will boost growth, says Jalan

The Union Budget for 2002-03 would boost investment and kick-start the economy, Reserve Bank of India Governor Bimal Jalan said on Friday.

"My personal reaction is very, very positive. I am sure this feeling will be shared by all economy watchers -- sooner rather than later," he said in a statement.

"The measures for enhancing investments, particularly in infrastructure and agriculture will definitely boost investments and growth."

India is grappling with an economic slowdown with gross domestic product growth slumping to four percent in 2000-01, the lowest in a decade. It is expected to touch 5.4 per cent this year.

Jalan said the Budget also gives a strong thrust to the development of the financial market.

Presenting the Budget on Thursday, Finance Minister Yashwant Sinha lowered the rates on state-run savings schemes by 50 basis points and also linked it to government bond yields.

Reuters

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