The Union Finance Minister Arun Jaitley has expressed his confidence that India’s gross domestic product (GDP) will expand at a rate of 7.5% in the financial year 2017-18, up from 7.1% in the previous fiscal. He also said that the country’s growth remains strong with low inflation, fiscal prudence as well as low current account deficit (CAD).
The finance minister stated that developing economies have become increasingly important in driving global growth, accounting for more than 75 per cent of global expansion. He also said that among developing economies, India has been a major driver of global economic growth and has also undertaken robust structural reform measures.
Talking about GST, Jaitley said that India is on course to roll out the ambitious goods and services tax (GST) regime from July 2017 and noted that the new indirect tax regime will eliminate the multiplicity of taxes and make India a single common market. He further said that demonetization move will push the Indian economy to a less-cash trajectory, increase tax compliance and reduce threats from counterfeit currency, which acts as a source of terror funding.
Jaitley who was participating in G-20 finance ministers' and central bank governors' meeting, also said that India has significantly stepped up investment in electricity, roads, financial access and housing for the poor and the government has taken a number of steps to ensure inclusive growth.