New Delhi, Sept 05: Economic fundamentals were strong enough to ensure 6-6.5 per cent growth in GDP during 2003-04, while fiscal deficit will be under control, Finance Secretary D C Gupta said today. "We are in a pretty strong economic position with low inflation, high forex reserves and good monsoons. As a result, we are expecting a growth not less than 6.0 per cent. It may be 6.5 per cent," Gupta told the India-Asean business summit.
He said the fiscal responsibility and budget management act was a "self-imposed" legislation on government to reduce its fiscal deficit.
"With fiscal deficit under control, lots of resources would be available for development, which would spur growth," he said. Referring to the strong fundamentals and a slew of measures announced in the budget to boost FDI inflows, Gupta said, "We are now regarded as an attractive investment destination. This has been reflected in various growth parameters."
The India development initiative would improve trade relations with other countries and boost investments, he added.
Gupta said financial sector reforms have been accelerated through amendments in SEBI Act to strengthen the regulator and check market misconduct, changes in securities regulation contract act to pave way for demutualisation of bourses and securitisation law to enable speedy recovery of non-performing assets by banks. "We also have a stable tax regime," he said adding direct tax rates have been stable since 1998, while excise duty rates have come down to only three slabs. Bureau Report