Reforms on course, will push growth higher: Arun Jaitley
Wooing foreign investors with the promise of easier conditions for doing business, Finance Minister Arun Jaitley today said continuing reforms will push India’s economic growth higher than last year’s 7.3% despite adverse global winds.
India has the potential to be the bright spot in the gloomy world economic scenario, he said, adding fiscal deficit is coming down and inflation is very much under control.
Showcasing the India growth story to international investors with collective asset under management of $10 trillion, Jaitley asked them to invest in infrastructure, manufacturing and other sectors that have funding needs.
On the last day of his four-day visit to Singapore and Hong Kong, Jaitley said he thinks India has the potential to be the bright spot even in somewhat gloomier situation.
“We grew by 7.3% last year and I hope we are able to outperform our last year’s growth numbers,” Jaitley said at the inaugural APIC-India Capital Markets and Institutional Investors Summit.
Underlining that international investment is going to be a great source of resource for the country, the Finance Minister said the government was working on a slew of reforms, including a new law to ensure disputes get settled through arbitration within six months.
“Ease of doing business is still work in progress. Significant advancement has been made, a lot will have to be done of course on a continuous basis,” he noted.
“I am conscious of adversities that come our way. India ended last year with 7.3%. We had good fiscal figures.
Fiscal deficit is gradually coming down and we are now aiming to bring it down in the next 2-3 years to 3%,” he said.
Current account deficit is down to 1.2%, foreign exchange reserves are very high, inflation is very much under control and therefore, macroeconomic indications seem to be positive, he added.
“Global headwinds are not helping us and at times are creating adversities, particularly the external factors have impacted our exports. And in favourable global conditions, we can improve on the growth rate of 7.3% in a significant way,” Jaitley said.
He also promised a simple and globally competitive tax regime while asserting that the government was confident of rolling out the new Goods and Services Tax (GST) regime from the next fiscal.
“I see the road ahead with regard to several reforms programmes of the government continuing. Economic reforms will be an ongoing activity. There is no finishing line for that,” the Finance Minister said. — PTI
Cost of capital hurting investment: FM
Pitching for greater overseas investments to drive India’s economic growth, Finance Minister Arun Jaitley on Monday said domestic private sector investments have been slow and high cost of capital was also affecting several sectors.
GDP growth to outpace 7.3%
FM said all macroeconomic parameters, including fiscal deficit and inflation, appear positive and hoped that GDP growth would outperform 7.3% rate of last year.
GST rollout next year
Promising a simple and globally competitive tax regime, Arun Jaitley said the government was confident of the new GST regime to rolled out from the next fiscal and expressed confidence about an early resolution of pending disputes on direct taxes front.
‘Strengthening PSBs top priority’
The Finance Minister said the government’s top priority is to bring down levels of their bad loans, and steps like issuance of fresh capital and merger of weaker banks would take place after strengthening them.