Tokyo: Highlighting India as the world’s fastest growing major economy despite an unsupportive global environment, Finance Minister Arun Jaitley has 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,” he said.
Pro-growth policies have helped GDP grow at faster-than- expected 7.9 per cent in the January-March quarter, and 7.6 per cent for the entire 2015-16 fiscal, Jaitley said, asserting that these are not “stray figures” and an analysis of the pattern shows inherent strength in the Indian economy. “To grow at this rate in the midst of an unsupportive global environment is itself significant,” Jaitley said addressing a conference here 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, I firmly 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 world’s fastest growing economy,” he said. Going forward, “reform process is going to continue. Hopefully, Goods and Services Tax (GST) bill is 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,” he said commenting on the latest GDP numbers. A good monsoon this year, as forecast, “would mean an increase in agriculture production, more purchasing power and rural demand,” he said. “Better monsoon, when rural demand increases, will cumulatively push up growth.” The GDP expansion in January-March period bettered 7.2 per cent of December quarter and helped extend the lead over China, which grew 6.7 per cent in the March quarter — slowest in the world’s second largest economy in 7 years. –PTI
