Finance minister Arun Jaitley on Friday said although the world economy is facing a grave crisis, Indian economy has a potential to grow at a rate of 7-7.5% and the government is finding methods to see that whether the country could add 1-1.5% more.
“…the world today is passing through a very critical note. The new year 2016 has started for the world as a whole in a challenging note. I have been repeatedly saying that there was a time period in the past where challenges and crises used to emerge occasionally once in a decade, today the global economy is so critically integrated, volatility is the new norm,” Jaitley said while speaking at Bengal Global Business Summit here.
“We have seen in the last few days the price of oil collapsed, we have seen the current crisis in China. The World Bank re-fixed the rate of global growth at 2.9%. In this crisis India is fighting its way,” he pointed out.
“If in the adversity India has a potential to grow at 7 and 7.5%, is it impossible for India to add another 1-1.5%? It gives us the cutting edge which adds to jobs, which enable us for poverty alleviation, it gives us more resources to service the poor,” the finance minister averred.
The World Bank on Wednesday cut its global economic growth forecast for 2016, saying the weak performance of major emerging market economies will hurt activity overall. The World Bank in its recent report, however, said Indian economic growth rate has made it the global growth champion and that its GDP to pick up to 7.8% in the next financial year.
Jaitley said India’s services sector had improved significantly and the manufacturing sector was also picking up from a slowdown. The Union government was still designing and finding methods of how to make Indian economy more strong, he said.
“We need to enhance our public spending into our social infrastructure…We need to enhance our spending into our rural sector, irrigation, rural roads, rural electrification, because it is this spending which almost brings back instantaneous results,” he added.