Citing economic reforms, policy changes along with a good monsoon, Finance Minister Arun Jaitley said that the path to 10 per cent growth in Indian economy is not impossible
“This (10 per cent growth rate) is reasonably possible. That is where India’s potential is,” Jaitley said at an event in Washington soon after his arrival on the second leg of his nine-day US tour to attract American investors.
“The manufacturing sector was almost crawling, and the growth rate was around five per cent”, he said.
“Now with a lot more money being invested in infrastructure and governments even conducting their fiscal policy in order to help the manufacturing sector, there is a significant growth possible as far as this area is concerned,” Jaitley added.
According to latest World Bank figures, India may officially surpass China in its growth rate as it is now leading major emerging economies in the growth chart.
“With an expected growth of 7.5 per cent this year, India is, for the first time, leading the World Bank’s growth chart of major economies,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President after the release of the latest Global Economic Prospects (GEP) report a week back.
On the other hand, China is projected to grow at 7.1 per cent. Developing countries are now projected to grow by 4.4 per cent this year, with a likely rise to 5.2 per cent in 2016, and 5.4 per cent in 2017, the report stated.
In China, the carefully managed slowdown continues, with growth likely to moderate to a still robust 7.1 per cent this year. In India, which is an oil importer, falling oil prices have reduced vulnerabilities, which has paved the way for the economy to grow by the rate of 7.5 per cent in 2015, the report said.