BackGovt working on key agricultural initiatives to revive growth: Arun Jaitley
Jaitley says there is a need to rationalize all subsidies and ensure stability in policies to attract investment and drive growth
Premium
Chennai: Finance minister Arun Jaitley on Monday said the government is working on key agricultural initiatives that are expected to be announced next month.
Responding to a query of Mallika Srinivasan, chairman and chief executive of Tractors and Farm Equipments Ltd’s (TAFE), on how the government plans to revive agricultural demand during an interactive Confederation of Indian Industry session in Chennai, Arun Jaitley, union minister for finance, corporate affairs and information and broadcasting, said there were very special initiatives in the offing focused on the agricultural sector.
“Last few months we have seen a fairly significant slowdown in agricultural demand. Low prices in the market driven by low global commodity prices and overall the demand from rural sector off-take has been subdue," said Srinivasan.
The finance minister said that this year is going to be better than last year but not a great year. “We have to concentrate on manufacturing, infrastructure and public spending on infrastructure will have to improve and hopefully with clarity in governance we are able to proceed on this course," he added.
Jaitley said there was a need to rationalize all subsidies and ensure stability in policies to attract investment and drive growth.
“From 1 January, LPG subsidy is going through banks...We have to gradually rationalize all possible subsidies," the finance minister said.
The government is expected to incorporate the suggestions of the Expenditure Management Commission headed by former Reserve Bank of India governor Bimal Jalan in the budget proposals for 2015-16. Jalan is reported to have submitted interim recommendations to the finance ministry suggesting various steps to rationalize subsidies and public expenditure. The government’s subsidy bill towards oil, fertilizers runs into trillions of rupees.
Jaitley also underlined the need for stability in tax and other policies to make India an attractive place for investment. The implementation of the goods and services tax (GST), he added, will help in improving the business climate in the country. The GST, Jaitley said, was welcomed by different states and that “none of them will lose a single rupee" following the implementation of the new indirect tax regime.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
