New Delhi: The Government is taking measures to give momentum to the growth process which was affected by the global financial crisis in 2008, a top Finance Ministry official said today.
“The global financial meltdown has had its impact on India. While the Government has taken several measures to start the growth process, we acknowledge that more needs to be done,” Economic Affairs Secretary Arvind Mayaram said here while addressing a CUTS international conference.
The economic growth fell to a decade low of 5 per cent in 2012-13 fiscal. Finance Minister P. Chidambaram had last week said that the growth will be between 5-5.5 per cent this fiscal.
The Indian economy had a growth rate of over 9 per cent, but the global financial crisis in 2008 pulled down the GDP expansion to 6.7 per cent in 2008-09 fiscal.
Mayaram said sectors like electricity, agriculture, education, healthcare and railways still suffer from serious visible competitive distortions.
Global financial crisis
He said as an aftermath of global financial crisis, the developed economies have brought in laws that are anti-competitive, which promote protection for domestic players and are aimed at restriction on foreign goods and services.
“This is an alarming trend and would have serious long-term consequences for global economy. Unfortunately institutions like IMF and World Bank have little influence in arresting this trend,” Mayaram said.
During April-September this fiscal, exports grew 6.32 per cent to $179.38 billion. Trade deficit in the first seven months of the fiscal stood at $90.68 billion.
Mayaram said to bring about greater competition in various sectors, efforts are required to make governance more transparent, accessible and accountable.
