Finance Minister Arun Jaitley on Friday said India has the potential to grow at a reasonably high level in the next decade or two, owing to some structural changes by the government and a turnaround in the global economy.
The whole environment of doing business has changed in a matter of months, Jaitley told at an event organised by the US-India Strategic and Partnership Forum. “India has the potential to grow at a reasonably high level in the next one-two decades. This is mainly because of the series of structural reforms being carried out by the government, turnaround in the global economy, and the massive investment opportunity that the infrastructure sector offers.”
Jaitley’s statement came after IMF chief Christine Lagarde called on the policymakers to take benefit of the global broad-based economic recovery and take decisions to make the recovery sustainable. “Our suggestion is that it is not time to be complacent, it is time to take those policy decisions that will actually enable more people and more countries to benefit from that recovery that should be made sustainable,” Lagarde had said.
Arun Jaitley said that the sheer size of the country and economy would offer huge opportunity for investment in India in the next few years. “I am certain that now that the growth is returning back to the world, the future holds an important direction as far as India is concerned,” the Finance Minister said.
He said the government was aware of the short-term glitches for steps like demonetisation and the Goods and Service Tax. “But, in the long term, it would benefit the country.” India’s GDP growth reached a three-year low of 5.7% in the first quarter of the 2017-’18 financial year. The government’s demonetisation exercise and the implementation of the GST were blamed for the economic slowdown.
Jaitley told the investors and corporates that the BJP government at the Centre had changed the whole environment of doing business in a matter of months. He said Indians now use technology in a big way. “Today, almost everyone is connected to the banking system. Almost every adult in India has biometric. The integrated data has helped the government to reach every citizen on digital platform,” he added.