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Jaitley forecasts 7.5% GDP in current fiscal year

Apr 23, 2017, 12:17 IST
Indian economy will grow at a clip of 7.5 per cent this fiscal, up from 7.1 per cent in the previous year, and remains resilient with low inflation, fiscal prudence and low deficit, Finance Minister Arun Jaitley has said.
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Participating in G-20 finance ministers' and central bank governors' meeting, he said emerging economies have become increasingly important in driving global growth, accounting for more than 75 per cent of global expansion, according to PTI news report.

Among emerging economies, "India has been a major driver of global economic growth with an expected growth of 7.5 per cent for 2017-18 against 7.1 per cent in 2016-17", an official statement quoted him as saying.

India's growth, he said, remains resilient with low inflation, fiscal prudence and low current account deficit (CAD), talking about robust structural reform measures.

Addressing the meeting yesterday, Jaitley said India is on course to introduce the goods and services tax (GST) from July this year.

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GST, he said, will eliminate the multiplicity of taxes and make India a single common market.

As per IMF projections, India's medium-term growth is poised to go above 8 per cent, Jaitley said.

About demonetisation, the finance minister said the 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.

"These and many more multi-faceted reforms are expected to ensure India can withstand volatility of the global economy as well as ensure an upward growth trajectory," he asserted.

Jaitley is on an official tour to the US to attend the spring meetings of the International Monetary Fund (IMF) and the World Bank and other associated interactions.

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He is accompanied by RBI Governor Urjit Patel, Economic Affairs Secretary Shaktikanta Das and Chief Economic Adviser Arvind Subramanian.

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