Global economic situation is grim, warns FM Jaitley

RSTV Bureau
New York :   India's Minister of Finance Arun Jaitley speaks at the Asia Society, Monday, April 18, 2016, in New York. Jaitley spoke on the topic, "Made in India: The New Deal." AP/ PTI

New York : India’s Minister of Finance Arun Jaitley speaks at the Asia Society, Monday, April 18, 2016, in New York. Jaitley spoke on the topic, “Made in India: The New Deal.” AP/ PTI

Finance Minister Arun Jaitley who is in New York to address a United Nations session, has flagged off concerns about the slowing global economy.

“If you were to ask me how’s the global situation, I think it’s grim and worrisome and what will be the state of play a year or two years from now, I don’t think anybody has been able for sure to hazard even a significant guess,” said Jaitley at an event at the Asia Society in New York.

Jaitley then went on the say that the slowing global factors have also begun to hurt India.

“The global situation is challenging,” he said, adding that global factors are impacting India “in terms of exports in particular.”

While speaking about China which clocked in 6.7 per cent growth in the first quarter, Jaitley said several regions in the world are trying to do its best within the limitations.

“Low commodity prices have hurt some people and helped some people. Low oil prices have helped some people, it has hurt some people…Each one is trying to put firewalls around their own system so that within the limitations how best you can save yourself from the slowdown and grow within the limitations that the world has created for you,” said Jaitley.

“I can tell you that developing economies being protectionist is much less worrisome (than) when (in) the most developed countries you hear noises of protectionism,” he added.

Speaking about trade, Jaitley said India has moved on from being uncertain about trade with other nations to a more confident economy on the world stage now.

“With a much larger economy, I think Indian confidence in terms of dealing with other countries in terms of trade has also significantly increased. The India of 2016 is going to be significantly different from the India of the early 1990s,” said the Finance Minister.

Last week Jaitley had participated in the crucial spring meeting of the World Bank and the International Monetary Fund in Washington. On Monday he addressed analysts, economic experts and business executives at a session organised by CII and the Asia Society Policy Institute in the city.

He is also scheduled to meet investors and top business executives and address a session at the United Nations before he wraps up his New York visit.

(With inputs from agencies)