NEW DELHI, May 31 (Xinhua) — The new Indian government is seeking a constant loan flows of over 5 billion rupees (80 million U.S. dollars) to revive investment and accelerate economic growth, said local media Saturday.
The Times of India quoted finance ministry sources as saying the government would set up a mechanism “to ensure that credit flow to industrial and infrastructure projects does not stall.”
“The plan is to have a mechanism to monitor approved projects every month — see how credit is flowing and what are the problems holding it back,” according to the report.
India Friday reported a mediocre economic performance of 4.7 percent growth in the 2013-14 fiscal year, due to decline of manufacturing, mining and construction.
Indian Finance Minister Arun Jaitley will present the 2014-15 Budget which is focused on encouraging investment, growth and job creation.
The government would open up foreign investment in defense sector gradually to shift arms production to domestic industry in order to create jobs and boost growth, said local daily The Hindu Business Line.
Tax reform and stimulus measures for market will also be the priorities of the budget, according to the newspaper.
While the government is not ready to open the country’s retail market to foreign investment, higher quota for domestic retail investors is expected to be detailed in the budget, which will be presented to the Parliament in early July, according to the report.