Finance Minister Arun Jaitley has said that reviewing the crisis that has surrounded the global financial markets and triggered a record crash in Indian stocks while sending the rupee to a two-year low, Prime Minister Narendra Modi is of the view that if India maintains the growth, then it is possible to strengthen the country’s economy. PM wants some steps taken to prepare the country to take advantage of the opportunity that the situation has presented and hold detailed consultations with stakeholders including state governments on what is to be done.
The fiscal deficit and inflation of the country are under control. India stands by the growth projection which was made at the beginning of the year where indirect taxation data actually supplements the idea of those projections. Total indirect tax collections in the first four months of the fiscal have risen 37% from a year earlier and adjusted for additional tax measures, revenues are up a healthy 14.6%, which the FM said was indicative of a pickup in manufacturing.
Fueling the recovery hopes the monsoon will boost the growth prospects by enhancing demand and increasing economic activity during the course of the fiscal. The government expects the economy to grow by more than 8% in the current fiscal, well above the 7% estimate of rating agency Moody's.