WASHINGTON: Union Finance Minister Arun Jaitley has stated that the Foreign Direct Investment (FDI) flows to India have increased in 2016-17, over that in 2015-16, indicating improve in the global confidence of the economy.
Jaitley, who participated in an Interactive Seminar organised by FICCI on “India Opportunity”, opined that the Indian economy is poised for strong, sustainable and balanced growth, backed by the Government of India’s focus on implementing structural reforms.
“There is clear evidence now that slowdown effect of demonetisation and the Goods and Services Tax (GST) has now more or less played it out. The implementation of the GST from July 1, 2017 and its gradual complete transition, follow-up to demonetisation, and enacting other structural reforms by the Government of India would take the economy towards higher growth trajectory,” he said.
Talking about infrastructural reforms, the minister highlighted the bold reforms introduced in India, which now have created impressive opportunities in infrastructure assets resolution under the Insolvency and Bankruptcy Code (IBC) process and in financial sector.
He also spoke about the interface between the global and the Indian economy; national investments and the Infrastructure Fund; and reform initiatives of the Government of India, especially to improve Ease of Doing Business.
Defending the case of reforms in the H1B/L1 visa processes and social security contribution during his bilateral meetings, Jaitley highlighted the contribution of skilled Indian professionals towards the US economy, adding that the same must be suitably appreciated by the receiving end.
“High calibre Indian professionals serving American interest won't be unfairly deprived of their well-earned money,” he argued.
Jaitley also discussed Indo-US Economic Cooperation, with specific focus on how bilateral trade and investment can be improved between the two countries. For the same, he also held bilateral meetings with his US counterpart and Treasury Secretary; and US Commerce Secretary here.
“It is important to understand global spillovers of domestic policy actions of individual member countries. Subsequent versions of IMF’s strong, sustainable and balanced Growth Report can examine analytical tools for policy spillovers,” he said.
Furthermore, Jaitley, who participated in the G-20 Finance Ministers and Central Bank Governors (CBGs) Meeting called for formulating the G-20 response by the member countries to address the challenges being faced by the global economy.
Arun Jaitley is currently on a one week official tour to Washington D.C. to attend the Annual Meetings of the International Monetary Fund (IMF) and the World Bank and other associated meetings. He is accompanied by Dr. Urjit Patel, Governor, RBI; Secretary, Department of Economic Affairs, Subhash Chandra Garg and other officials.