The Interim Budget highlights the achievements of the government and outlines the focus areas for 2009-10. Given the situation of the world economy, the Indian economy has performed well. The need to accelerate the pace of reforms, to expand employment and bring the economy back on a high- growth trajectory has been clearly spelt out.
Infrastructure, through public-private partnerships, rural development, education and exports, are sectors where we will see substantial investments and spending. The continuation of interest subvention to farmers, the stress on rural housing, health insurance, public distribution and primary education augur well for inclusive growth. Public sector banks will continue to play a dominant role and we should be seeing a credit growth of 22-25 per cent for the banking sector in 2009-10. The announcement for recapitalising public sector banks over the next two years to enable them to maintain a credit adequacy ratio (CAR) of 12 per cent sends out a positive signal.
OP Bhatt, Chairman, State Bank of India