Spending on infrastructure will boost economy: FM

From ET Realty

India can move to a high-growth trajectory of 10 per cent over the next two years with higher spending on infrastructure and by creating and strengthening banks, finance minister Arun Jaitley said at the ET Awards.

“Everybody who analyses what’s going on in India also realises that if in an adverse situation, we have the potential to grow at about 7.5 per cent, then the Indian normal cannot be 7.5 per cent, it has to be higher.” Jaitley said reforms are a race without a finishing line, and as the economy evolves, reforms must continue. He said the government has taken adequate steps to make it easier to do business here and claimed that tax reforms are a work in progress.

The finance minister identified spending on infrastructure, including social and rural, as steps to boost the economy. Jaitley also reiterated that the reforms process has adequate political backing in the country and that the crucial goods and services tax (GST) Bill has everyone’s support. In a veiled attack on the Congress leadership, he said while the middle-rung in the party backed reforms, it changed its stance ahead of the Parliament session, demonstrating how the top-rung did not want the bill to sail through.

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