Abhijit Sen Gupta, senior economics officer, Asian Development Bank (ADB) India, tells Dilasha Seth the multilateral agency’s forecast for growth in India was lower than the finance ministry’s because of subdued investments. Edited excerpts:
Why is ADB pessimistis about India’s economic growth?
Our numbers for India are low as new project announcements have come down. The investment sentiment, which translates into actual investment and gross domestic product (GDP) growth, is quite low. The subdued investment estimates have led to our conservative forecast on GDP growth.
Some industry players and economists have criticised the Budget proposals on retrospective amendments to the Income Tax Act from 1962 and the General Anti-Avoidance Rule (GAAR).
These proposals would be debated till the Finance Bill is passed. The corporate sector has expressed concern. However, the Budget increased the eligibility on viability gap funding projects. This is good for investment.
The Budget projected subsidies would come down. Given the Food Security Bill may be introduced in 2012-13, do you think the projections are realistic?
The government is willing to provide food security to the needy. However, it depends on the final estimates on subsidies in the proposed Food Security Bill and its impact on the fiscal deficit.
You’ve reached your limit of free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app