Finance Minsiter Arun Jaitley has asserted that Indian economy is managing to remain in a positive side and moving ahead, despite adverse global circumstances and headwinds. He further said that economic crises earlier would leave an impact once in 10-15 years but now they are far more frequent and added that under these circumstances India has to find its own level.
Jaitley stated that India has its own agenda full in terms of reforms and investment into key areas adding that the government has opened up more sectors for investment. However, the one aspect where India is adversely affected is the country’s exports which are declining due to the global economy. He said that the headwinds are against the country.
Highlighting the positive changes, he said that the India is with the expansion of aspirational class and have a surplus human resource which is creating huge Indian diaspora around the world noting that the spread of people of Indian- origin is going to hugely increase around the world in the next 20 years.
While talking about oil prices he said that the low oil prices have created a favourable environment for the Indian economy as it helped to absorb the loss faced by oil companies and kept inflation under control and also enabled the government to rationalize subsidies. Further while stating the reason for the investment in the country Jaitley said that the environment for investment is more conducive now because the decision making is quicker, infrastructural investments are picking up and Indian economy is growing faster than most other economies in the world.
However, Jaitley stated that the world economy is under great stress with almost every forecast indicating a negative trend in terms of growth statistics. He outlined three key challenges facing India's economic growth which includes the global slowdown impacts the world market, which in turn poses challenges for large economies like India. Second, 55 percent of the population is still dependent on agriculture and with the unpredictability of monsoons, their purchasing power has been reduced significantly and the third, while public and foreign investment in India has grown by 30 percent and 40 percent respectively, the rate of growth in terms of private investments is still sluggish. In order to address these challenges, Jaitley highlighted the structural changes brought about by the Indian government on the back of country's consistent drive for growth.
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