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Arun Jaitley: Govt working on additional measures to boost economy

Maintaining that inflation is under control, Finance Minister Arun Jaitley on Wednesday said the government is working on additional measures to bolster economy.

By: Express Web Desk | New Delhi | Updated: September 20, 2017 7:10 pm
Arun Jaitly, gdp, economy, gdp growth Talking about inflation, Jaitley said it is still within the statutorily fixed monetary policy target of 4 per cent.

Maintaining that inflation is under control, Finance Minister Arun Jaitley on Wednesday said the government is working on additional measures to bolster economy. He added that an announcement regarding those additional steps will be made after consulting Prime Minister Narendra Modi.

Jaitley’s comment came days after official data showed GDP hitting a three-year low of 5.7 per cent in the June quarter. The minister has held a series of meetings in the past few days with some of his ministerial colleagues and senior government officials to take stock of the situation and firm up steps to push up growth. Jaitley was expected to meet Modi over the slowdown of economy on Tuesday, but the meeting was cancelled at the last minute.

Talking about inflation, Jaitley said it is still within the statutorily fixed monetary policy target of 4 per cent. “During monsoon period, vegetable prices generally go up. This is spike period. When it is 3.36 per cent in the spike period, it is under control as per the traditional Indian standard,” he said.

Retail inflation hit a five-month high of 3.36 per cent in August. “We have taken note of all economic indicators which are available… the government will take any additional moves which are necessary. I am not in a position to announce today in the press conference. I will be certainly consulting the prime minister before that and when we decide, you will come to know,” he told reporters. He further said this is a proactive government and has been reacting to the situation as when the situation demanded. “We have been taking appropriate actions… we have been consistently moving on the reform agenda,” he stressed.

Two years ago, India was touted as a rare bright spot in a gloomy global economy, with GDP growth outpacing a slowing China. But since early 2016, GDP growth has fallen for six consecutive quarters, slumping to a three-year low of 5.7 per cent in the April-June quarter, with India losing the fastest growing economy tag to China for the second straight quarter.

Apart from a falling GDP growth rate, exports are facing strong headwinds and the industrial growth is the lowest in five years. The current account deficit (CAD) — the difference between inflow and outflow of foreign exchange — rose to 2.4 per cent of GDP in April-June.

(With PTI inputs)

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    PK Gupta
    Oct 2, 2017 at 1:11 pm
    A booster may be given in textile sector, which is labour intensive and less capital intensive. The regime failed to visualise the result of disruptions on account of demonetisation and gst implementation. A buffer was required to be maintained before before implementation of such large initiatives. There are opportunities in the field of indigenous production of additional gas and oil but adequate efforts are missing no new investments so far. Similarly we are importing a large number of items which can be produced locally, such as inputs required for solar energy I.e. PV cells, which are mostly imported. Why can not we produce these on compe ive prices and if required we can collaborate with friendly countries like in case of bullet train (which was not a priority , as we have limited resources). The exchange rates have not been managed properly for the benefit of the exporters, which could enable local manufacturing. Rupee was required to be depreciated for inflation effect.
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      PK Gupta
      Oct 2, 2017 at 12:59 pm
      The continuous down turn in the economy is due to flawed economic policies - The oil prices were high during previous regime and it was difficult to curtail fiscal deficit, inflation and policy rates. Present regime was lucky that the oil prices came down to about one half. However, the retail rates kept high to allocate funds for infra. This kept the inflation at moderate level. The RBI was not ble to reduce policy rates beyond a limit. Thus the industry lost COMPE IVENESS resulting continuous reduction in exports, rise in imports and failure of make in India programme. Timely initiative for course correction was not taken. The private investment suffered due to this reason. This uncompe iveness of the industry is also responsible for further the slippage in NPA. The MOF/RBI also failed to review the DRT cases where recoveries are not being received as per DRT Act timelines (a big failure). There is opportunity in textile sector, where smaller countries have performed. cont.
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        George Cruz
        Sep 21, 2017 at 3:25 am
        The truth is that the BJP/Jaitley implemented Demonetisation has eradicated the black money h o a r d i n g by the corrupt politicians to avoid paying taxes to the government, has eradicated the corruption at all levels of the government, the GST has avoided the double taxation, and because it is a major change to the India's economic model and it may take some time a common man realizes the benefits. The major beneficiaries of the demonetisation is the government collects more taxes and helps to pay for the freebies for the disgruntled Dalits, the illiterate Muslims, and the recently converted Christians who are pushed by the missionaries into collecting freebies after conversion. The government has reduced its deficit spending because more money is available for the development and to pay for the freebies.
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        1. Vimal Riktam
          Sep 21, 2017 at 12:40 am
          Thanks to demonigtization.
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            Pavan
            Sep 20, 2017 at 11:45 pm
            Modi is running Govt by fooling people.
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