Following is the text of the remarks of Finance Minister Shri P. Chidambaram while addressing the NDTV Business Leader of the Year Awards Function here last evening:
"Let me congratulate all the award winners. What marks each of the corporates and individuals who have won an award today are the ambition, aspiration, confidence and the deep-seated hunger to succeed and excel in this competitive world. Indian business and industry has seized the opportunity provided in the last seventeen years to bring about a transformation in the Indian economy.
There is a storm blowing across the world. India will be affected to some extent, although indirectly, but Indian business and industry have placed India in a situation where we can weather the storm. We will remain vigilant. Our regulators have shown great agility. You saw SEBI move quickly earlier this evening and RBI also moved quickly immediately thereafter.
Going forward, we can still end this year with a growth rate of 8 per cent. I am confident that in 2009-10, the growth rate will bounce back to 9 per cent.
There are number of positive signals.
Indirect tax collections are on target at a little over 14 per cent for the period up to July 2008. During the period April-September, 2008, personal income tax collection has grown by 23.4 per cent. Corporate tax collection has grown by 35.3 per cent.
Earlier this year there were apprehensions about exports. During the period April-August, 2008, exports have increased, in dollar terms, by 35.1 per cent and imports have increased, in dollar terms, by 37.7 per cent.
Many sectors have shown impressive growth. During April-July, 2008, coal production has registered a growth rate of 7.7 per cent as against 0.6 per cent last year. Mining has grown by 4.5 per cent as against 2.7 per cent. The automobile sector has witnessed a growth rate of 12.8 per cent as against 0.4 per cent. Chemicals and chemical products have grown by 9.6 per cent as against 9.1 per cent.
In the first quarter, the construction sector has recorded a growth of 11.4 per cent as against 7.7 per cent in the first quarter of 2007-08.
Railway revenue earning traffic has shown an increase of 9.4 per cent as against 6.1 per cent last year.
You heard a few chairpersons of banks speak about the health of the Indian banking system. The lowest capital adequacy ratio in any of our banks is a little over 10 per cent. The highest capital adequacy ratio for a bank is 13.65 per cent. At the end of June, 2008, gross NPAs are at 2.11 per cent and net NPAs at a historic low of 0.93 per cent. During the period April to June, 2008, bank deposits have increased, year-on-year, by 23.87 per cent. Advances have increased, year-on-year, by 28.42 per cent. Time deposits, during the period April to September 12, 2008 have increased by 9.0 per cent.
The most important number is the cumulative investment proposed by Indian industry and business. For the period ending June, 2008, cumulative investment is estimated at Rs.66,77,278 crore as against the end of June, 2007 figure of Rs.44,58,840 crore. In the first quarter of the current year, new investments amounted to Rs.5,14,266 crore. In July, 2008, there was a further investment of Rs.2.18 lakh crore and in August, 2008, there was an investment of Rs.1.32 lakh crore.
Huge capacities are being added in power, steel, commercial vehicles, passenger cars and two wheelers.
What is there to fear? There is nothing to fear but fear itself.
I want you to be confident and optimistic. We will remain vigilant and move with the speed and agility according to the demands of the situation. I know that you have the capacity to make India stronger and all Indians prouder. Once again, I offer you my congratulations and wish you the very best."
BSC/SS/DN-246/08
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