Finance Minister Arun Jaitely while addressing Global business meet expressed that India has the potential to grow at 8 to 9%, at the same time surviving the global economic slowdown.
Giving an indication of the content of the coming budget, Mr Jaitely hinted that the budget will not go after populism rather it will be loaded with structural reforms. Structural reforms focusing on infrastructure, irrigation, farm productivity and manufacturing can boost growth by additional 1 to 1.5%.
“At the end of the day, what is it that you are asking for is to get that cutting edge that you must grow at 1-1.5% faster than what you are doing today.”
The Finance Minister pointed out continuing slump in the oil and commodity prices can benefit India despite its some negative feedback effects. With the support of a positive monsoon scenario, the country can deliver the 8-9% growth with is a mammoth figure in the context of the current recession in other economies.
Finance Minister pointed out that India is one of the few countries that successively survived crises in the past. At the same time, the present 7.5% growth is not the optimum growth rate for the country.
The global situation according to him is an opportunity to grow at a fast pace. According to him, the present commodity price burst is favorable to India as the country is a net buyer of these items.