When Structural Reforms Are Brought, Economy Witnesses Few Jitters: Arun Jaitley

India has remained world's fastest growing large economy for the last three years, said Finance Minister Arun Jaitley, allaying the fears of economic slowdown.

Addressing the media in New Delhi on Tuesday (24 October), the minister stated “We will report on the situation as they develop. A lot of internal meetings on the state of economy were held. Discussions were also held with the prime minister. But India has remained one of the fastest growing economies in the world."

Talking about goods and services tax (GST), the minister pressed on the long term benefits and focus on resolving the ongoing issues, alongside.

“It's obvious that when structural reforms are brought, the economy witnesses a few jitters, but in the long run, these very reforms accrue big benefits to the economy. Last month, I had mentioned that we will appropriately respond to the challenges on GST.”

Presenting the government figures, Subhash Garg, Economic Affairs Secretary said that inflation has come down significantly with strong foreign reserves, crossing $400 billion this year. He seconded the minister as he said that the macro-economic fundamentals of the country were strong.

“GDP growth story is heartening despite recent blip. Real GDP growth average is 7.5 per cent in last 3 years. There was a blip with GDP at 5.7 per cent but we are convinced it has flattened out,” said the secretary.

He further mentioned that the disinvestment target of Rs 72,000 crore is going strong and might be exceeded.

“This year will witness the biggest disinvestment exercise by the government. Rs 30,000 crore has already been done and we are moving towards our Rs 72,000 crore target,” said the secretary mentioning how GST has been the biggest reform, along with other ones like demonetisation.