Friday 21 October 2016

Low Growth, High Inflation Not Acceptable: Jaitley

File - PTI Photo / TV GRAB

Finance Minister Arun Jaitley today said the current situation of high inflation and low growth has to be reversed to achieve sustainable GDP expansion along with improvement in price situation.

"If inflation is high then you begin at a point where growth is low. We need to change this situation. And, I believe that unless we find out the reasons which have led us to such a situation, it is difficult to solve it," he said.

Jaitley was speaking at a BJP forum meeting here, his second engagement in the nation's financial capital after becoming the finance minister.

He attributed the reasons for the current predicament to policy paralysis and the populist measures of the previous UPA regime.

"Some of the populist schemes like free medicines in Rajasthan did not help the then ruling party to come back to power," the Finance Minister said.

Stating that the Narendra Modi government inherited very low growth, Jaitley said GDP grew at 4.5 per cent and 4.7 per cent, respectively in 2012-13 and 2013-14.

"The manufacturing sector for one year was flat and another year it was negative. When manufacturing growth becomes negative, the Customs and Excise duties come down, revenue of government also comes down, forcing it to borrow more," he said.

Calling for eradication of poverty, the Minister said one of the challenges for the nation is to remove poverty and to increase the pace of development.

"People are not ready to accept that the pace of development is slow and we are not able to remove poverty," he said.

© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.
Situation Along Assam-Nagaland Peaceful: Chief Secretary Curfew in Parts of Kashmir, Youth Killed, Toll Rises to 58
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store

Post a Comment

You are not logged in, please Log in or Register
  • Daily Mail

More than a decade after India first started the procurement process, it has finally inked an €8bn agreement to buy 36 Rafale fighter jets from France’s Dassault. The original deal was to buy 126 Rafales to replace the accident-prone Russian MiG-21s. Ultimately, the government offered to buy only 36 ready-to-fly planes.

POLL STARTED ON: Sep 26, 2016
Brazil’s Rio de Janeiro is hosting the 31st Olympic Games from August 5 to 21. This is the first Olympics being held in South America and is going on even as a majority Brazilians are unhappy with their rulers. Here’s a quiz on some random Olympic facts and related trivia.
QUIZ STARTED ON: Aug 11, 2016