New Delhi(PTI): Noting that India is emerging as one of the fastest growing economies, Finance…
NEW DELHI(PTI): Finance Minister Arun Jaitley, while speaking at an event in New Delhi, touched upon various subjects like growth, India’s stature in the global economy, rupee and GST.
Here’s what he said about each of them:
On government spending for growth
Jaitley said that India Inc wants the government to spend more, but economists remain sharply divided on the issue. He said, public investment maybe key in the current economic situation, but the economy has to be put on a sounder platform.
In the run up to the upcoming Union Budget, he said, “any budget has to weigh areas of weakness and then pitch in that direction.
Jaitley said that India is one of the few economies that survived crises in 2001, 2008 and now 2015. At a time when many economies are not doing too well in the world, and amidst the global slowdown, Jaitley said that “when a country indicates over 7.5% growth, we stand out and we feel happy about this”.
However, he also said that 7% growth isn’t India’s optimum growth rate. “We have a lot going for us. We have the potential to grow. We should be able to achieve 8% growth in FY17,” he added.
“We must carry on structural reforms put in place. We must grow at rate 1.5 % more than we are,” he said.
Jaitley said that there is a need to make every sector strong for India’s growth. “We need a strong corporate and agricultural sector,” he said. For this, there is a “need (for) a sound policy that helps both corporate and agriculture sector.
There is a need to concentrate on infrastructure development, agricultural productivity and manufacturing, Jaitley said. We have our potential right in front of us, he added.
On the rupee’s weakness
The rupee has recently shrunk to 68 to a dollar, a level not seen since the Modi government came into power.
He said that passing good laws by consensus should be our preference, however, now “Congress stands along without its allies,” he added.