Union Finance Minister Arun Jaitley has claimed that Narendra Modi government will boost the economic growth and set higher GDP targets in the coming years. On a 10-day visit to United States, Arun Jaitley further opined that India’s 7.5 per cent economic growth rate is not its “best potential growth rate” and he is satisfied with what the NDA government has achieved in just one year of being in power.
“The credibility of the Indian economy has been virtually re-established but then as I have been repeatedly saying while there is excitement, there is also a lot of restlessness as far as we in the government are concerned because we feel that the 7.5 per cent growth rate we have achieved is not our best potential growth rate,” Jaitley told a prominent news and business channel CNBC in US.
“We think we have an ability to do much better,” the Union Finance Minister and one of the senior most member of the ruling BJP further stressed.
According to him, series of reforms introduced by the Central government aided by the boost of investment particularly in infrastructure, improvement in manufacturing, agriculture will help push up India’s economic growth. Jaitley also predicted the growth rate to touch 8 per cent this year.
“I think our growth rate certainly end of this year should be around 8 per cent. (In) Future years I am keeping my fingers crossed, our targets are going to be higher,” he said.
On the question whether India is now a better investment than China, Jaitley refused to compare the two nations claiming China having consistently scoring above 9 per cent growth rate for more than three decades, while the Indian economy has been experiencing the fillip in recent years.
“We have a lot of distance to cover before we can really equate ourselves with that but that is a good example to follow and therefore I’d rather India grow for a decade or two by that 8-9 per cent growth rate and it is only then that our entire potential will be realised,” he said.
On a crucial contention of concerns regarding ‘renewed tax terrorism’ in India, the Finance Minister told that the said term was coined by him and “it is my responsibility to make sure that it does not happen in India again.”
Jaitley also assured that the incumbent Modi-led government back home is one of the most progressive regimes when it comes to direct taxation in India.
“The age of that kind of aggressive adversarial tax regime is over. We will probably have one of the more tax friendly regimes in India,” the Union Minister said.
(With inputs from the PTI)