New Delhi: Presenting the report card of the first 100 days of the Modi government the finance minister indicated that the economy was shoeing signs of recovery.“Investor confidence is improving, most sectors are indicating positive news, the manufacturing curve has turned and inflation is moderating. Asked when he saw the RBI cutting interest rates, now that inflation is moderating, Mr Jaitley said: “Left to myself, I hope very soon. I am sure that those who decide also heard your question.”
The finance minister said that when three months ago, the BJP-led NDA government came into power, the country was going through economically-challenging times. “The country was facing significant challenges, decision-making had considerably slowed, there was loss of investor confidence, and the mood was significantly low,” Mr Jaitley said.
He claimed that even the “election result itself was a mood changer” as with a majority government, taking economic decisions was easier. “We wanted to expand economic activity, hasten decision-making, ease doing business, open up in significant sectors while maintaining social sector expenditure in most areas,” the finance minister said. He said that there were no internal issues in this government as was seen in the past and the finance ministry enjoyed the PM’s support on all decisions.
He said that the government has taken several measures to ensure that tax disputes don’t take place and has increased FDI in defence and railways and eased foreign investment norms in the real estate sector. “I think the long-term impact of all these decisions would gradually be felt. If you look at the impact today in terms of investment mood, there is a sea change,” he said. He said that the government has set an ambitious disinvestment plan and a select committee will soon start its work on the insurance bill where huge foreign investment in waiting to come into the country.
On the coal verdict impacting the economy, Mr Jaitley said, “Obviously, if the resource can’t be utilised, its adverse impact is inevitable and therefore we only hope that this uncertainty doesn’t continue for a long time.”
Mr Jaitley dismissed any perception that power is centralised with PM Narendra Modi, saying ministers enjoy a large extent of decentralisation with accountability.
