Economy to grow much faster in coming quarter: Jaitley
Posted on Aug 30 2014 | IANS
New Delhi, Aug 30 : Finance Minister Arun Jaitley Saturday said that the economy is expected to grow much faster in the coming quarters than the growth of 5.7 percent in gross domestic product (GDP) achieved during the first quarter of the current fiscal.
"Growth rate of 5.7 percent in first quarter is encouraging. The recent GDP figures show that the economy is on a recovery path. We expect the economy to grow much faster in the coming quarters," Jaitley said here on the occasion of the new government completing 100 days in office.
The Indian economy expanded by 5.7 percent during the first quarter of the current financial year to log the highest growth yet in nine quarters or over two years.
GDP which is the aggregate market value of all the goods and services produced in the country, had expanded by just 4.6 percent in the previous quarter, that is January-March, and by 4.7 percent in the like quarter of last fiscal.
The 5.7 percent growth in April-June quarter is also the highest since the 6 percent increase logged during October-December quarter of 2011-12, as per data compiled by the Central Statistics Office (CSO).
On foreign investment climate, Jaitley said there has been a sea change in investor sentiment as they have shown interest in investment opportunities in India.
"In terms of investment mood, there is a sea change. We created a special mechanism for resolution of tax disputes. We have allayed investor fears on retrospective tax," Jaitley said.
In recent times the overall expectation of a further reform push by the new government and the quick notifications for the hike in foreign direct investment (FDI) limits in defence and railways have led to positive investor sentiments.
Jaitley added the central government was working towards the administration of the new land acquisition law, but the challenges need to be dealt across the political spectrum.
"I am optimistic that as more and more decisions in this direction come, we will be able to help the economy grow faster," Jaitley said.
"As we started working in the administration of the new land acquisition law, the states and the centre are realising the challenges. I will discuss this with major political parties," he added.
He said he would discuss with the rural development minister if there could be "more flexibility".
"When I say more flexibility, I mean slight enlargement of the exemption," he said.
He added that the government is very clear whether social sector schemes are moving in the right direction.