A 'different India' is all set to benefit from global economic recovery, says Arun Jaitley

Dismissing views that a global economic recovery may impact India adversely, Finance Minister Arun Jaitley at the IMF Annual Meeting in Washington said that a "different India" is instead all set to benefit from a global economic recovery.

He indicated that a slew of reforms including note ban, goods and services tax , easing of regulations and procedures, removing the layers of conditions from FDI in improving global ecosystem will change India for better.

He added, "Future holds an important direction as far as India is concerned."  

'INDIA HAS THE POTENTIAL TO GROW'

At another event organised by the US-India Strategic and Partnership Forum, Jaitley said, "India has the potential to grow at a reasonably high-level in the next one-two decades. This is mainly because of the series of structural reforms being carried out by the government, turnaround in the global economy, and the massive investment opportunity that the infrastructure sector offers."

After several years of disappointing, growth has been underlined by both the World Bank President Jim Yong Kim and the managing director of the International Monetary Fund Christine Lagarde.

In fact, Lagarde termed the recovery as a steady trend by adding that she expected higher global growth this year and next year. Speaking at a seminar on Friday, Jaitley said, "As the integrated world economy moves on consequential impact on demand, the Indian economy would also grow."

INDIAN ECONOMY DESTINED TO MOVE UP

After almost six quarters of negative slide, Jaitley hoped that the recovery in global economy could be one of the various reasons why in the coming months and years Indian economy is also probably destined to move up .

Presenting a strong case for investment in India, Jaitley listed a series of reform measures the Modi govt has initiated over the last few years and had also reduce the procedural problems to introduce greater ease of doing business.

"The first factor when it comes to investment opportunities in India is -- do we allow people to come in. But, it is also a harsh reality that merely we have a door wide open that's not enough for people to enter. When they enter, they must feel more comfortable. And they may feel that India is an extremely comfortable place to do business with," the finance minister said.  

Listing out a strategic economic initiatives, Jaitley said, "India today is one of the most open, globally integrated economy.  We are moving up the ease of doing business ranking every year," he said adding that the massive steps taken by the Indian government includes using new digital technologies for governance and making them benefit  the people.  

"Today, almost everyone is connected to the banking system. Almost every adult in India has biometric. The integrated data has helped the government to reach every citizen on digital platform. All this has helped us save billions of dollars to ensure that the resources reaches the targetted population."

JAITLEY DEFENDED THE DEMONETISATION EXERCISE

In Washington, Jaitley defended the demonetisation exercise while there is empirical evidence that the November  8 last year announcement had caused immense hardship to people in the unorganised sector and reduced demand had hurt manufacturing. He said, "There is now a sense that difficult decisions  need to be taken.  A series of courageous steps were taken which ultimately culminated in demonetisation of high-value. The government knew that there would be short-term impact on the economy, but, in the long term, it would benefit the country," he told the gathering.

The Goods and Services Tax (GST), Jaitley said it was "a more efficient system which has brought the country together, even economically, allowed free flow of goods and services across the country."  If the implementation of GST has caused pain to the assesses, Jaitley said, "The status quo of the past is gone. Yes, there are everyday learning experiences. But, it has also shown that governments at the Centre  and the state are willing to take steps."

If back home industry and markets are looking towards the govt for a roadmap for recovery , Finance Minister Jaitley in Washington made a strong sector-wise argument.

He said, "Barring some sectors, the feedback in the US is that we have done well. Construction of 250 highways is on. We have a booming airline sector in which a new element -- regional connectivity had been added."

PRIVATISATION OF AIR INDIA

"We are in the process of privatisation of the national carrier Air India. The issue is in advance stage. We are working at a privatisation in the railways sector. There are private players now in manufacture of railways rolling stocks. 450 railway stations will have private participation and that offers real estate opportunities," he said to indicate the govt's intent to engage the private sector, which has been reluctant to invest.

Earlier in the day, to highlight the improved environment for economic activity, Jaitley had said," Irrespective of the federal and multi-party character of India, there is now a feeling both in the Centre and different state governments, without exception, that each one wants investment to come to his or her state."

If systemic corruption is cited as one of the biggest deterrent by investors, Jaitley tried to allay their fears. He said, "The reduction in conditions and procedures has brought down if not eliminated the stigma of corruption which was once a stigma to India. People have now realised that India in many parts is much cleaner place to do business."

He spoke about the  steps taken by the Modi govt to target the shadow economy.

He said, "When the BJP government came to power in 2014, it had the choice to look the other way and allow the shadow economy to continue. To expand India, had to turn into a far, cleaner, bigger and better economy. Today those in the past kept illegal assets shiver. There are strong deterrents now."