Given global environment, difficult to achieve double-digit growth: Jaitley
The Finance Minister said there is scope for improvement from the current rate if reforms are carried on.
New Delhi: Asserting it was "extremely difficult to achieve double-digit growth in the current global environment", Finance Minister Arun Jaitley on March 17 said there was scope for improvement from the current rate if reforms carried on.
"I can't claim it is possible in this global environment to come anywhere close to double-digit growth. It's extremely difficult, it's practically impossible to do," he said at the India Today Conclave here.
Given various variables, the finance minister said India can at least aim high and improve. "For example, if you carry on some of the pending reforms and if you concentrate on areas like manufacturing, investment in agriculture etc... if you can improve health of the banking system to support growth, your private sector becomes more oriented to investment.
"If you are not able to go anywhere close to double-digit growth, the prospect of greater economic activity and improving the present rate is always there... the idea is to improve our growth rate even in an adverse global environment," he said.
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Terming the India's 7-7.5 per cent growth "impressive" compared to global growth, Jaitley said, "Compared to our own inherent ability, one always feels that India can do much better." If India has to increase growth by 2 per cent from the present capacity, he said, a combination of several factors would be required including a supportive global environment and an increasing share of manufacturing in economy.
"Domestically, agriculture has the maximum potential to grow in terms of sector... we can do much better in manufacturing if we develop an expertise for low-cost manufacturing. The wage bill in China is going up and, of course, you need a 'reform temperament' in the country," he said.
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The constituency that support reforms today is much larger today, he said, adding, it is much bigger than which one which obstructs reforms. "Therefore, slowly we are moving in the right direction and if all the policy changes, taxation and otherwise do come about in India, you have better monsoon, step up investment in agriculture and private sector... and the supportive global environment, it is possible for India to get a significant amount of growth," he added.