GDP to grow at 7.7 per cent in 2018, says FM Arun Jaitley
NEW DELHI: Finance Minister Arun Jaitley said global growth was picking up but emerging economies faced new challenges in terms of inward-looking policies and rising protectionism, and tightening of financial conditions in global markets.
Speaking at the annual meeting of the New Development Bank (NDB), a bank promoted by BRICS, Jaitley said Indian economy is pegged to grow 7.2% in 2017 and 7.7% in 2018.
“But there are newer challenges, notably a possible shift towards inward-looking policy platforms and protectionism, a sharper than expected tightening in global financial conditions that could interact with balance sheet weaknesses in parts of the euro area and increased geopolitical tensions, including unpredictable economic policy of US,” he said.
He pointed to huge investment opportunity in India’s infrastructure space and the rest of emerging economies while urging NDB to step up funding as existing multilateral lenders are unable to meet the demand.
He pegged India’s “unmet infrastructure funding needs” at $646 billion over the next five years. Jaitley added that India has sought $2 billion in loans from NDB.
“The uniqueness of NDB should lie in faster loan appraisal, a lean organisational structure resulting in lower cost of loans, a variety of financing instruments, including local currency financing, adoption of country system and flexibility in responding to the needs of clients. These would make NDB truly a new institution, and distinct from older MDBs (multilateral development banks),” Jaitley said.
Speaking at the annual meeting of the New Development Bank (NDB), a bank promoted by BRICS, Jaitley said Indian economy is pegged to grow 7.2% in 2017 and 7.7% in 2018.
“But there are newer challenges, notably a possible shift towards inward-looking policy platforms and protectionism, a sharper than expected tightening in global financial conditions that could interact with balance sheet weaknesses in parts of the euro area and increased geopolitical tensions, including unpredictable economic policy of US,” he said.
He pointed to huge investment opportunity in India’s infrastructure space and the rest of emerging economies while urging NDB to step up funding as existing multilateral lenders are unable to meet the demand.
He pegged India’s “unmet infrastructure funding needs” at $646 billion over the next five years. Jaitley added that India has sought $2 billion in loans from NDB.
“The uniqueness of NDB should lie in faster loan appraisal, a lean organisational structure resulting in lower cost of loans, a variety of financing instruments, including local currency financing, adoption of country system and flexibility in responding to the needs of clients. These would make NDB truly a new institution, and distinct from older MDBs (multilateral development banks),” Jaitley said.
