With global investors looking keenly to invest in the country, India’s federal structure and democracy should not become an obstacle for economic growth but should remain its strength, finance minister Arun Jaitley said in a subtle reference to legislation and reform initiatives that have hit opposition roadblocks.
“We can never allow our federalism or our democracy to become an obstacle. We have to make sure that it remains our strength. Therefore easier decision making, easier passage of laws, easier taking of reform measures are all factors which are going to attract investors,’’ Jaitley said in his inaugural address at a global investors meet organised by the Congress government in Karnataka.
Instead of merely looking at India as the fastest growing economy in the world, investors must be encouraged to invest in the country through a track record of progressive policies, stable administration and good governance, the finance minister said. Commending the fact that states in India have initiated an era of competitive federalism he said that organisation of investor meetings alone would not translate into investments. “Businessmen are very competent people they analyse comparative advantages and then decide the destination of their investment. States which have a consistent record of good governance, stable administration, stable politics and policies, easy availability of land, resources, easier prospects of growing businesses will be destinations for investments,’’ Jaitley said.
While Karnataka has emerged as an economically progressive state on the back of a services and agricultural economy ,the state needs to attract large industries, he said. “Manufacturing is where jobs are. I think with a good agriculture and services sector it is this sector that needs concentration now. This will convert Karnataka into a region of economic activity and growth in this country,’’ Jaitley said.
‘Debt position comfortable’
New Delhi: In a foreword to the Status Paper on Government Debt released by the finance ministry on Wednesday, Jaitley said most of the debt is of domestic origin insulating the portfolio from currency volatility, with the Centre primarily borrowing from the market to finance the fiscal deficit.