On Thrusday(27.08.2015) Union Finance Minister Arun Jaitley said that, with a growth rate between 8 to 9 percent Indian can outpace China and become the lead driver of Global Economy.
In and interview, Jaitley told, “The world needs other engines to carry the growth process. And in a slowdown environment in the world, an economy which can grow at 8-9 percent, like India, certainly has viable shoulders to provide the support to the global economy,”.
The minister said that investors need not fear about any legislations to invest here as India has already laid down the “Red Carpet” for businesses looking for investing in India.
He added, “My message to the people wanting to do businesses in India is that there is a red carpet laid down for you. India needs investments, India invites investments and we are going to be one of the more investor-friendly destination.”
India is projected a growth rate of 8-8.5 percent in the current fiscal year whereas in 2014-15 the GDP grew by 7.3 percent.
Arun Jaitley said, “In an environment where there is a relative global slowdown, India seems to be doing reasonably well. We finished last year with 7.3 percent growth rate, will probably finish this year with a slightly better growth rate than that and next year hopefully will be a little better.”
International Monetary Fund(IMF) estimates that in 2025-16, with a growth rate of 7.5 percent India will overtake China as the fastest growing emerging economy. And there will be a decline in China’s growth rate from 7.4 percent in 2014 to 6.8 percent in 2015 and a year after 6.3 percent.
Finance Minister Jaitley said, “I see this as a great opportunity. The Chinese normal has now changed. It is no longer the 9 percent, 10 percent, 11 percent growth rate. If we can continue to reform at a faster pace and really attract global investment, then our ability to provide that shoulder which the world economy needs will be much greater”.
“When the Chinese economy slowed down a little, it didn’t impact much. When the devaluation and the currency war started we did get somewhat adversely affected. When global markets fell, we also felt a huge impact in terms of currency and markets. But within a day we had recovered”, he said when asked about the slowed down of Chinese economy and the crash in the stock markets.
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