India's growth rate of 7.5% not enough, has potential to do better, says Arun Jaitley

Union Finance Minister Arun Jaitley has said that India’s current growth rate of 7.5 per cent is not enough as per its own requirement standard and the country has the “potential” to do “better”. Expressing concern over the decline in India’s exports, Jaitley said the country’s growth parameters were on track and the government is moving ahead on its reform agenda with inclusiveness and successfully meeting all its fiscal parameters.

“On 7.5 per cent by global standards or by world standards in the current situation are we doing well? The answer is Yes.  But by our own requirement standards are we doing well enough?  I think, we can do better,” Jaitley said yesterday at the Carnegie Endowment for International Peace, a global American think-tank.

“The fact that in this otherwise a globally adverse environment by putting some domestic policies in place, by using investments and surpluses cleverly we have managed to sustain some growth. One of the biggest areas of worry has been the declining exports,” he said.

Noting that both in value terms and volume terms, the global situation has impacted export, Jaitley, who is on a week-long visit to the US, said that things could improve if some of the variables change.

“On 7.5 per cent by global standards or by world standards in the current situation are we doing well? The answer is Yes.  But by our own requirement standards are we doing well enough? I think, we can do better,” Jaitley said.

“Does 7.5 per cent satisfy either the Indian government, me or the Prime Minister or India’s political opinion, the answer is no. I think, by our own yardstick, we realise that we have potential in a helpful environment to do better,” he said, adding that in an adverse global situation, probably one does settle for that rate.

“But if hopefully with any of these variable factors growth returning to the rest of the world at some stage, better Indian monsoon, and continued favourable environment of oil prices and the impetus of policy direction in India, if the reforms go on...if we are able to cross those hurdles, our ability to do much better would be there,” Jaitley said.