Jaitley said that there were a number of changes in past decade, that have led him to believe there was a reason for the country to feel encouraged about its prospects.
Focusing on the health of public sector banks as well as channelising more investment in infrastructure and rural India will be crucial for the country’s growth in the coming years, finance minister Arun Jaitley said on Tuesday at the State Bank of India Banking and Economics Conclave.
Jaitley said that there were a number of changes in past decade, that have led him to believe there was a reason for the country to feel encouraged about its prospects. “There has been a major change in the attitude of state governments.”
“If you look at the bigger picture, state governments have realised the importance of being competitive and being able to attract more resources. More states now have more resources than they had before.”
Another changing trend the finance minister highlighted was about how concepts like the monetary policy committeeand the GST tax, which has been discussed for decades, have transformed into reality this year. “Despite working in an adverse and unhelpful global environment globally, I think our desire to grow, and to take the necessary steps in order to grow has increased”.
When asked if the government could intervene in the case of settlements of stressed loans, especially by public sector banks, Jaitley said unlike private banks, public sector banks were still being governed by a number of obsolete laws, such as the 1988 Prevention of Corruption act, which hold them back. “I think the fear of consequences dilutes their potential,” he said, adding that there was now an oversight committee and a motion to amend the said obsolete laws.