Union Finance Minister Arun Jaitley has said the Indian economy is estimated to register 7.6 percent growth in 2015-16, notwithstanding contraction of global exports and two consecutive years of shortfall in monsoon.
Amid weaker outlook across the globe, he said that India’s experience of strong economic growth, comfortable price situation, low Current Account Deficit (CAD) and adherence to path of fiscal recovery have projected it as an outpost of opportunity for global investors.
Jaitley, who was speaking at a meeting with a group of Executive Directors (EDs) of the World Bank Group here yesterday, said the focus of the present government is on areas like non-conventional power generation, the nation-wide sanitation campaign, electrification of villages in India, major and minor irrigation projects and rural housing for all among others.
Highlighting the various macroeconomic variables favorable to India, he pointed out good monsoon forecast, political reform process and low current oil prices as the key drivers of economic growth.
The Finance Minister emphasized on the macro-economic benefit that India is experiencing due to the fall in oil prices.
He stated that the fall in global oil prices during the time when India was recovering from the impact of global financial crisis, has greatly benefitted India in the recovery process.
Talking about the World Bank Group’s role in world development, Jaitley stressed on the need for the World Bank to have a larger capital base, more activity and more projects.
He also stated that the role of World Bank Group could be expanded in areas like social sector – education and health, agricultural development, small-scale industry and handlooms etc.
The discussions held ranged from the performance of ongoing World Bank Projects in India to various policy issues related to the World Bank Group financing.
A group of nine World Bank Executive Directors is currently on a six- day official visit to India as a part of their South Asian Region visit. They will also be visiting Bangladesh and Sri Lanka.
In India, their visit covers meeting the senior Government of India officials and getting a firsthand experience of the implementation of the World Bank projects in Agra, Bhubaneswar and Jaipur.