“Indian economy is vulnerable”
THANJAVUR: The Union Budget for 2010-11 was presented in the midst of global economic crisis.
As more than 48 per cent of GDP came from world exposure, Indian economy is vulnerable to changes happening in the world economy, said V. B. Athreya, eminent economist and adviser to Dr. M. S. Swaminathan Foundation, here recently.
Delivering a special lecture on the budget at SASTRA University, Dr. Athreya said that higher GDP growth was associated with a higher standard of living.
But in Indian condition, higher GDP does not reflect better living condition because a major part of population is yet to get the benefits of higher GDP growth.
While tax concession for direct taxes were given in the budget, indirect taxes had been increased to generate Rs. 46,500 crore additional revenue.
The basic duty of 5 per cent on crude oil and price rise of petrol and diesel would affect the common man very badly, leading to inflationary trend, Dr. Athreya said.
Badrinath, Dean of Business Management, presided over the lecture.