Union Finance Minister Arun Jaitley on Wednesday said that India was counted among fragile five just two and a half years back with high inflation, CAD, fiscal deficit and lack of policy directive. Speaking at Petrotech 2016, Jaitley said that clarity on economic reform roadmap led to India being called bright spot in global economy. Driving economy on twin engines of higher public investment and FDI,” he said.
Pointing at India’s economic legacy, Jaitley said that economic changes don’t happen overnight, but the road map and agenda for them can always be laid. “Earlier mindset of policymakers was that just by dishing out a few favours to the affluent you can bring changes in the country’s economy. So called seven-decade normal had to be disrupted. PM had the broad shoulders to face consequences of the decision. Decision of this kind has pain in transition, which is regrettable but had been factored in,” he added.
As for Goods and Service Tax (GST), he said that most issues have been sorted out. “Only one major issue is pending and it is expected to be resolved in near future. We are hoping issue of cross-empowerment will be resolved and GST will be implemented from April 1.”
Responding to foreign investors on the state of the Indian economy, Jaitley said, “In the long term, it is headed for a very major change; culture of decision making has changed.”