The correct answer is (c) 7.25%.
The Union Budget 2005-06 projected a GDP growth rate of 7.25%. This was based on the assumption that the global economy would continue to grow at a healthy pace, and that India would be able to maintain its high growth momentum.
The budget also projected that inflation would be kept under control at 5%. This was to be achieved through a combination of fiscal and monetary measures.
The budget also proposed a number of measures to boost investment and growth. These included tax cuts, infrastructure spending, and reforms to the financial sector.
The budget was generally well-received by the markets. The Sensex, the benchmark stock index, rose by more than 2% on the day of the budget announcement.
However, some analysts were concerned that the budget was too optimistic. They argued that the global economy was facing a number of risks, and that India could be affected by these risks.
Despite these concerns, the budget was seen as a positive step towards achieving India’s goal of becoming a developed country by 2020.
The other options are incorrect because they are not the projected GDP growth rate for 2005-06.