Benign oil prices, likely monetary policy easing and government reform initiatives will help the Indian economy to grow at 8.1-8.5 per cent in the current fiscal, Parliament was informed today.
"The increase in GDP growth can be expected on account of factors like benign oil prices, likely monetary policy easing facilitated by lower inflation and lower inflationary expectations....," Minister of State for Finance Jayant Sinha said in a written reply in the Rajya Sabha.
Besides, the cumulative effect of various reforms undertaken by the government including fiscal consolidation and reforms and fillip to agriculture, industry and infrastructure would push economic activity, he said.
Sinha said the Economic Survey has indicated that the growth rate of GDP at constant market prices can be expected to increase and is likely to be in the range of 8.1-8.5 per cent in 2015-16.
The GDP grew at 7.4 per cent in the previous fiscal.
In another reply, Finance Minister Arun Jaitley said the government is firmly committed to the path of fiscal consolidation.
According to budget estimates, fiscal deficit is to be brought down to 3.9 per cent of GDP in 2015-16, from 4.1 per cent in the previous fiscal.
"Government has taken measures for fiscal prudence and economy to rationalise expenditure and optimise available resources," Jaitley said.
He said the government is committed to subsidy reforms and has already deregulated petrol and diesel subsidy, besides launching direct benefit transfer to prevent leakages.
