In her customary address to the joint session of Parliament, President Pratibha Patil, today said the stimulus measures would help the Indian economy to grow at a relatively high pace despite adverse global economic environment.
"Even in the prevailing adverse global environment, our economy, it is hoped, would still register a relatively high growth rate." Official estimates have pegged GDP growth for 2009 at 7.1 per cent, considered good at a time when most developed economies are facing recession. She said the government has taken a series of measures to stimulate the economy.
These steps would drive demand for goods and services reviving production activities in the manufacturing as well as services sectors. She said the government policies have ensured that even as the country faces an economic slowdown along with the rest of the world, "our fundamentals are much better."
"My government has relaxed the constraints imposed by the fiscal responsibility and budget management act to increase capital expenditure by the state governments," she said.
"India's domestic demand can inject fresh momentum to our economy," Patil said and added that the country's banks are well capitalised and face no threat that many banks face in other parts of the world.
