Highlighting India as the worlds fastest growing major economy despite an unsupportive global environment, Finance Minister Arun Jaitley said good monsoon, GST passage and higher spending will accelerate the upward curve in the coming years.
“When globally the going is good most countries do well. It is when the world is slowing down and world environment is not only unsupportive but at times obstructive, for an economy to grow is most challenging," Jaitley said.
Pro- growth policies have helped GDP grow at fasterthanexpected 7.9 per cent in the January- March quarter, and 7.6 per cent for the entire 2015- 16 fiscal, he said.
“To grow at this rate in the midst of an unsupportive global environment is itself significant,” Jaitley said addressing aconference before heading for Osaka.
Stating that global unpredictability impacts India, he said the shrinkage of global trade as well as fluctuations in currencies has adversely effected the economy.
Besides, drought for two consecutive years in parts of the country also impacted the growth prospects.
“Notwithstanding an unsupportive global environment, Ifirmly do believe that India has the potential over the next year or two to improve upon this growth rates and continue to retain its position as the worlds fastest growing economy,’ he said.
He further added, “reform process is going to continue. Hopefully, Goods and Services Tax ( GST) bill will be passed ( in ensuing monsoon session of Parliament), which has the potential to add to GDP growth. Also, our infrastructure and rural spending will add to that.” A good monsoon this year, as forecast, “would mean an increase in agriculture production, more purchasing power and rural demand,” he said.
Jaitley said the GDP figures released on Wednesday have shown that there was an increased consumer spending which has its impact on the private sector as increased demand will enable them to fill up their capacities.
Business Standard New Delhi,02 June 2016
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