Possible to move beyond 8% growth with focus on unreformed sectors: Finance Minister

Finance Minister Mr Arun Jaitley today said if the current growth rate is maintained and if our global position is retained, we will be able to get out of the range of 7-8 per cent growth. Speaking here while inaugurating the 91st Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI), Mr Jaitley said in order to achieve this, however, it was important to identify several unreformed sectors such as state road transportation, railways, dealing with urbanization, focusing on science & technology and research.

He also sought to dispel the impression that the government was in any way infringing on RBI's autonomy. Mr Jaitley said that he could not see how an elected, sovereign government which flags off issues of credit and liquidity could be construed as infringing on the autonomy of the institution. "Autonomy is not synonymous with isolationism" and therefore bringing issues of concern to the notice of the central bank should not be regarded as a hindrance to the autonomy of the RBI, said the Finance Minister.

He said that the next six months would see a rise in political rhetoric with voices which may not be the expression of the real intent. The need of the hour, Mr Jaitley said, was continuation of sound policies as against transient populism. The immediate target should be one that spells out the recipe for the next two decades; for an India where, further reforms would be the only constant for aspirational people whose attitude is for change and desire for a better quality of life.

He added that India had done extremely well in infrastructure areas such as aviation and ports and it must be ensured that these success stories were not converted into challenges for the economy. Looking ahead, he said, India cannot afford to have fragile coalitions. The need was to have policies that have clarity, directional stability and decisive leadership. Market economy with social consciousness must be the way forward for ensuring equitable growth, he added.

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