Minister of State for Finance Jayant Sinha amid the demand of another rate cut from the Reserve Bank of India (RBI) has said that the 75 basis points rate cut by the RBI since January will help boost growth along with structural reforms and thrust on infrastructure investments by the government.
The minister said that 'We already had 75 basis points of interest rate cuts. So we are going to see that cyclical upswing that happens when rates come down and inflation is under control... That's the first growth driver.' He added that structural reforms such as higher foreign investment caps in insurance, defence and other sectors and progress on GST will also help attain higher growth.
Jayant Sinha also said that increased focus on infrastructure investment, under which the government has increased the gross budgetary support to public infra projects by a whopping Rs 70,000 crore this year, shall aid the growth process, adding that even though the Narendra Modi regime inherited a weak economy it has been successful in getting it in a relatively better shape now.