BackArun Jaitley underlines India’s growth edge amid global rout
Jaitley says India will look to take steps to capitalize on the current global turmoil and convert it into an 'opportunity'
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New Delhi: India will look to take steps to capitalize on the current global turmoil and convert it into an “opportunity", as it is best placed among other emerging economies to take advantage of falling commodity prices, finance minister Arun Jaitley said at a press conference on Monday after attending a review meeting called by Prime Minister Narendra Modi to take stock of the global situation and its impact on the Indian economy.
It was decided in the meeting that the government will, over the next few weeks, have detailed consultations with the private sector, financial institutions, government departments, economists and state governments on measures needed to step up public expenditure, investment and consumption to fuel growth.
The finance minister, however, did not mention any specific steps that the government plans to take to further its reform agenda and ruled out any form of stimulus package.
He reiterated that the fundamentals of the Indian economy are strong.
“India is not an exporter of oil and commodities, and will benefit from falling commodity prices. Our growth projections are going to be broadly maintained even in the face of all adversities. The Prime Minister was of the view that given that the Indian economy is stable, we should be able to exhibit our potential to attract more investments," he said.
Jaitley stressed that increasing public expenditure will be a key priority for India.
The government expects the economy to grow at around 8% in the current fiscal, though rating agency Moody’s recently slashed India’s growth projection to 7%.
Jaitley said the government is closely monitoring the currency and capital markets with the Securities and Exchange Board of India and the Reserve Bank of India.
Minister of state for finance Jayant Sinha said India is well placed to “take the baton of growth from China" and reforms such as the goods and services tax (GST) will accelerate the process. The government has been struggling over the past few months to push through legislation such as the amendments to the land acquisition Act to make it more industry-friendly and the constitution amendment bill for the implementation of GST after opposition parties led by the Congress stalled parliamentary proceedings.
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