India recorded a growth rate of 7.2 per cent during 2014-15 and 7.6 per cent in 2015-16.
Pinning hopes on good monsoon, Finance Minister Arun Jaitley today said India is expected to remain the fastest growing major economy even as he stressed the government is making efforts to address various challenges including bad loans.
The minister also dismissed apprehensions with regard to CSO data on the GDP numbers, saying that IMF, which is the most credible international body, has accepted the data.
Replying to a debate in Lok Sabha on the first batch of Supplementary Demand for Grants for 2016-17 which was approved later, he said, "for the last two years, we were the fastest growing economy in the world. I hope this year we will retain that position."
The country recorded a growth rate of 7.2 per cent during 2014-15 and 7.6 per cent in 2015-16.
In the current year, he said, the rural demand will get a boost on the back of good monsoon after consecutive year of drought.
"I think there is a big silver lining that after two consecutive years of bad monsoons, so far we are seeing good monsoon in the country and the result of this is that this will give rise to rural demand...This year I hope it will not only improve farm production but increase purchasing power of the rural sector," Mr Jaitley said.
These developments are going to add to the economic growth, he added.
He also expressed hope that the government is going to meet its fiscal deficit target for the current fiscal given the buoyancy in the tax collection.
The Lok Sabha later passed the first batch of Supplementary Demand for Grant for 2016-16 envisaging additional spending of 1.03 lakh crore including cash outgo of Rs 20,948 crore.
On why the government has allocated about Rs 82,000 to the Food Corporation of India (FCI), Mr Jaitley said, it is a technical grant in the nature of loan help FCI save on interest cost.