New Delhi, August 28
Investments in rural infrastructure is the main strategy of the government to revive economic growth the Finance Minister, Mr Yashwant Sinha told the Lok Sabha today.

Replying to a debate on Supplementary Demands for Grants for 2001-02, Mr Sinha said the government would bolster the rural economy to step up the momentum of the economy as a whole.

He was candid to admit that there were problems in the economy and there was industrial and infrastructural slowdown. He cited the rise in crude oil prices and crash in the technology sector worldwide as some of the prime reasons for India’s economic woes.

Increase in the cost of fuel and hike in electricity charges by state governments had affected the inflation rate and a flat year in terms of agricultural production had added to the deceleration of the economy. Growth rate of agriculture was a mere 0.2 per cent and the production had declined by 12 million tonnes during the last financial year.

Industrial production had declined as historically it is linked to the pace of agricultural growth in the Indian economy. On the positive side, Mr Sinha said the country had a comfortable foreign exchange reserves of $ 44.4 billion and mountains of food stocks.

Mr Sinha, who heard members criticising his Budget which was passed without any debate, said that the Budget was alive and kicking and was being implemented. All promises made in it would be fulfilled, he asserted.

Talking on public sector units, the Finance Minister said the government favoured a national consensus on their restructuring.