India’s strong fundamentals and market size will continue to attract investment to create new markets, Finance Minister Nirmala Sitharaman said on Monday in a written response to Lok Sabha.
Citing the World Investment Report 2021, the finance minister said FDI inflows to India increased 25.4% to $ 64 billion in 2020, from $ 51 billion in 2019, becoming the fifth most big beneficiary in the world in 2020, against the eighth position. held the previous year. However, entirely new projects announced in India contracted by 19% in 2020, she said, adding that the drop is significantly smaller than the 44% drop in developing economies.
“As evidenced by the overall FDI inflows, India’s strong fundamentals and market size will continue to attract investment to create new markets,” she said. Regarding India’s 7.3% gross domestic product (GDP) contraction in 2020-2021, she said this reflects the unprecedented effect of the COVID-19 pandemic “once a century And the containment measures that have been taken to control the pandemic.
The fundamentals of the economy remained strong as the gradual reduction of bottlenecks, along with astute support from the Aatmanirbhar Bharat mission put the economy firmly on the road to recovery from the second half of fiscal 2020. -21, she added. According to the World Bank’s June 2021 Global Economic Outlook, she said, global growth for 2021 has been revised up to 5.6%, largely due to the sharp rebound in major economies thanks to the continuation of immunization and substantial budget support. India is expected to grow at a significantly faster rate compared to global average growth.
The Indian government has pledged to step up the pace and expand the reach of COVID-19 vaccination across the country, she said, adding that the average daily vaccination rate has doubled to 41.3 lakh doses in June compared to 19.3 lakh in May, following the implementation of the revised national COVID vaccination policy since June 21, 2021. India has now crossed the 38 crore mark of its cumulative vaccination coverage against COVID with 23% of the population covered by the first dose and 5.6% of the population fully vaccinated, she added.
On June 28, 2021, the Indian government announced a stimulus package of Rs.628,993 crore, the finance minister said in another response. The package aims to boost various sectors of the economy affected by the COVID-19 pandemic, she said, adding that the government has announced a total of 17 measures in three broad categories – economic relief from the pandemic, strengthening of public health and impetus for growth and employment. The finance minister further said that the combined CPI inflation in June 2021 was 6.26%, compared to an average combined CPI inflation of 6.16% in 2020-2021.
The weight of fuels like gasoline, diesel and other fuels in the combined total CPI is only 2.52 percent, she said. Responding to another star-studded question, Sitharaman said the salaries of executives and other employees of the Life Insurance Corporation of India have been revised with effect from August 1, 2017.