Skip to main content

India’s growth curve to accelerate further: Jaitley

By
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

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more