New Delhi: With GDP numbers showing an uptick, finance minister Arun Jaitley on Saturday said the economy is turning around, investor confidence is improving and inflation is moderating as a result of the recent government decisions to relax FDI norms and push manufacturing.
The manufacturing curve has turned, services sector is looking up and inflation has by and large moderated, he said, while addressing his first press conference to mark 100 days of the NDA government in office.
"In the first quarter (April-June), a 5.7 per cent growth rate is encouraging. With the long-term impact of all the new initiatives setting in, I am sure the impact in the coming quarters will be much larger," he said.
Read: India's GDP rises up at 5.7 per-cent, hits two and a half year high
“There is no space for retrospective tax legislation,” the Finance Minister said. "The government is taking steps to improve ease of doing business, opening up significant sectors, expedite decision-making while maintaining social sector expenditure in most areas," he said.
On inflation, he added, "Food inflation is a concern; normally at a time when prices of some fruit and vegetable are steep."
He also sought to dismiss any perception that power is centralised with Prime Minister Narendra Modi saying ministers enjoy large extent of decentralisation with accountability.
"See this whole debate is not about over centralisation. For instance I look after different departments in the government and the extent of decentralisation that we enjoy is very large," he said while addressing a news conference here.
Jaitley was replying to a question whether there was over centralisation under Modi, a sharp contrast to perception of previous Prime Minister Manmohan Singh being 'remote controlled.'
"But certainly if you have a very active prime minister, along with this decentralised authority which has been given to us, there will be an element of accountability," he said. Jaitley who is also the Defence Minister said that decisions were being taken in his ministries, and that for the important ones Modi or Prime Ministers Office (PMO) was being consulted.
"All these decisions we are taking in defence ministry or what we do in the finance ministry, are decisions taken in the ministry itself. Of course important decisions are cleared with the PM or PMO," he added.
