Finance Secretary Arvind Mayaram, expressing his optimism and assuring the global community in the G20 Deputies Meeting has said that India is following economic growth inducing policies and is confident that the GDP will rebound to over 7 percent in 2-3 years.
Mayaram stated that the union budget reflected the government’s announced policy reforms and from 4.7 percent growth in the last fiscal, the Indian economy grew by 5.7 percent in Q1 of the current financial year 2014-15, further by pursuing growth-inducing policies, the Government would contribute to India fully going back to 7 per cent-plus growth in two-three years.
The finance secretary, however pointed out that while it would be imperative for the emerging market economies (EMEs) including India to continue the path of structural reforms, the uncertainty and volatility in external environment is worrisome and needs the attention of the G20. He added that as the US Fed withdraws from unconventional monetary policy, there will be an overhang on asset prices in the Emerging Markets and therefore, volatility in the currency markets and hence EMEs should also be discussing G20 driven collaborative solutions which would reduce the impact of the possible near term repricing.