New York: Finance minister Arun Jaitley has virtually rebutted RBI governor Raghuram Rajan’s statement comparing India to a ‘one-eyed king in the land of blind’ and said that the Indian economy was growing much faster and, in fact, the fastest.
“At 7.5 per cent growth rate, any other country in the world would be celebrating... But it is a tribute to India’s growth story that even at this growth rate, we are still impatient because we know that our potential is to do distinctively better,” he said.
Mr Jaitley was reacting to a question by CNBC TV18 on Dr Rajan’s remarks last week that at 7.5 per cent growth rate India seemed to be ‘one eyed king in the land of blind’.
“Compared to the rest of the world, we are growing much faster, in fact the fastest. Compared to our own potential, we can do better,” the minister said.
On the potential to do distinctively better, Mr Jaitley said, “I see a couple of variables (good monsoon and reforms) — if they work to our advantage, we can do much better.”
“Assuming we have a moderate monsoon or a good monsoon, I am sure we will improve upon our growth rate. But I see no difficulty in maintaining the present one because of the thrust on the kind of economic activity going on in India, public investment, foreign direct investment, increased demand,” he said.
As regards reforms, he said that the momentum must continue and expressed hope that Goods and Services Tax (GST) will get through with numbers changing for the better in the Rajya Sabha.
The minister, however, parried questions on whether the government is planning to extend Dr Rajan’s term, which is coming to an end in September. But he did mention that RBI has done fairly well. He said the rates can come down further if there is good monsoon and inflation remains under control.
