Need to reduce cost of doing business in India: Jaitley

New Delhi: There is a need to reduce the cost of doing business in the country to revive the investment cycle, Finance Minister Arun Jaitley has said.  "The Finance Minister stressed upon the need to improve the business climate and reducing the cost of doing business  as important means for revival of the investment cycle," said an  official statement. He also emphasised on the need for coordinated approach  by all sector regulators to achieve financial stability.  "He referred to the high political expectations from the  new government and the opportunity now available for resolving  long-pending problems facing the economy," the statement said. 

Jaitley was speaking at the meeting of the Financial  Sector Development Council (FSDC) on Saturday. It was attended  by financial sector regulators including the Reserve Bank  Governor Raghuram Rajan and Sebi Chief U K Sinha. The minister also cautioned against slackening the vigil  in the area of fiscal consolidation.  Finance Secretary Arvind Mayaram briefed the council on  the macro-economic situation and improvement in twin deficits. 

"However, there is a long way to go in terms of reviving  economic growth, controlling inflation especially food  inflation, keeping deficit under control, addressing  infrastructure bottlenecks," Mayaram said.  He added that there is a need to continue to be in a state of preparedness for managing external sector  vulnerabilities. 

Economic growth slowed to 4.7 per cent in 2013-14 and  retail inflation stood at a 3-year high of 8.59 per cent in  April.  Besides, fiscal deficit narrowed to 4.5 per cent of GDP  in 2013-14 from 4.9 per cent in previous year.

The current  account deficit (CAD), which is the difference between inflow  and outflow of foreign funds, dropped to 1.7 per cent of GDP  in 2013-14 from 4.7 per cent in 2012-13.  The financial sector regulators at the meeting presented  their suggestions on the forthcoming Budget 2014-15, as also  their ideas on next generation financial reforms.  Among others who attended the meeting were IRDA Chairman  T S Vijayan, FMC Chairman Ramesh Abhishek, PFRDA Officiating  Chairman R V Verma and other government officials.