Union Finance Minister Arun Jaitley was hopeful in India’s economic condition while saying the country is at the world’s centre stage more than ever before for “aspiring to do better in an adverse” environment.
Addressing the annual fall meeting of the International Monetary Fund (IMF) and the World Bank, Jaitley said, however, the country’s current growth rate is not enough.
Jaitley was quoted in media reports as saying: “More than even before we are at the centre stage. That you would have to admit. But, I would put a caveat. India has become far more aspirational than ever before. So compared to the rest of the world, we are doing much better. Compared to our own yardstick, we feel, this is not enough.”
With the kind of investment that the country is getting at present, there will be a reasonable amount of growth always, and structural reforms like GST can only add to that, he added.
And, since the country is growing faster than the rest of the world, it has become natural recipient of a higher level of FDI, Jaitley said.
According to the latest forecast by the IMF and the World Bank, the country is projected to grow at 7.6 per cent in the next two years.
Meanwhile, talking at the meeting, Arun Jaitley expressed his concern over the risks of low and negative interest rates and “significant loan impairments” in the banking system.
According to media reports, Jaitley, for the global financial stability, called for “delevaraging” balance sheets to enhance growth.
As part of the annual fall meeting, the minster had bilateral meetings with his counterparts in several countries, including the US, Britain and China.
Earlier, in the wake escalated India-Pak boarder conflict, Jaitley dismissed any chances of economic crisis in the country, saying the economic impact due to the tensions will be “extremely marginal.” He said any impact that resulted from the crisis is temporary and the foreign direct investment into the country “continues to increase.”