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India needs private sector investment, growth in rural demand: FM Jaitley

Says easier decision-making, passage of laws will attract investors to the country

BS Reporter  |  Bengaluru 

Karnataka, Siddaramaiah, Ratan Tata, Tata
Chairman, Tata Trust Ratan Tata, Chief Minister Siddaramaiah, Union Ministers Arun Jaitley, Kumar Mangalam Birla during 'Invest Karnataka 2016-Global Investors' meet in Bengaluru. Photo: Saggere Radhakrishna

India must not allow federalism or democracy to become an obstacle in attracting global investors and that the focus must be on improving investment in private sector and boost rural demand, finance minister Arun Jaitley has said.

“We cannot allow our federalism or democracy to become an obstacle. Easier decision-making, passage of laws are all factors going to attract investors and investment.

Investors look at regions which they feel have progressive policies,” Jaitley said after inaugurating ‘Invest Karnataka’, the state government’s global investors’ summit. The state must focus on getting manufacturing investment, he added.

Speaking on the Indian economy, he said, “The macro economic conditions are far more favourable than in the past. India is talked about as the fastest-growing economy in the world. That doesn't take out our own share of sleepless nights,” said Jaitley. “We do have a challenge of improving private sector investment, rural demand as agriculture has seen bitter situation in the last two years.”

The finance minister also said that India had stood out among other nations in times of global slowdown.

“When comparable economies are struggling, we have an opportunity that our own domestic economy is strengthened,” he said. “In fact, if we look at the history of 2001, 2008 and finally 2015, we can take some element of satisfaction, amidst all three crises, India did display considerable resilience as much as we survived in these three crises,” Jaitley added.

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First Published: Wed, February 03 2016. 13:14 IST