Finance Minister Arun Jaitley on Sunday said that India could hope to achieve 8 to 10 per cent growth through better economic management, rolling out of GST and stepping up investments in smart cities and rural infrastructure sector.Speaking at the NABARD National Symposium on Mitigating Agrarian Distress and Enhancing Farm Income, in Mumbai on Sunday, Jaitley said even in challenging times, India was being looked upon as a bright spot.
“When we compare ourselves on surface with various international parameters and how world economies are doing, we may have some opportunity to cheer. Because even in challenging times, a 7.3 per cent growth rate last year and 8 per cent projection for the current year, give reasons for us to smile.” Jaitley said, adding that that the IMF had lowered the global growth rate to 3.2 - 3.3 per cent for the current year.
Alluding to the appallingly bad economic situation that Greece had found itself in, Jaitley said: “We have a lesson to learn from Greece, and
the big message is countries must learn to spend within their means”.He, however, expressed satisfaction that India was well tracked on a road map, where the fiscal deficit, current account deficit and level of inflation were under control.. “With revenue situation being more comfortable, and reform process gaining momentum India’s aspiration to cross 8 per cent growth and aim at 8-10 per cent growth is eminently achievable” Jaitley said.
“The choice that we are making between higher growth or redistribution of resources is actually a false choice. We need higher growth on one hand and targeted schemes an policies are needed to ensure that the benefits of growth reach those who have been left out,” the Finance Minister said.
Jaitley, however, admitted that the agriculture sector presented its own set of challenges. “While a double digit growth in services sector, 7 per cent growth in manufacturing is conceivable, we have been unable to ensure even a 4 per cent growth consistently in the field of agriculture”.
“With productivity levels reasonably low and 85 per cent of farmers being small and marginal, the agriculture sector is afflicted by higher input costs, low level of irrigation, high indebtedness, absence of an effective insurance mechanism and adverse impacts of climate change. Despite these
challenges, Indian farmers have been able to attain self sufficiency in food grains,” he said.
Stressing on the need for chanellising a large chunk of investment needs to be channelized into rural infrastructure development, with special emphasis on irrigation, Jaitley said: “States like Madhya Pradesh which have invested in irrigation have seen almost immediate results. It is this example we need to emulate”.
The Finance Minister said that keeping this challenge in view the government had launched the ambitious Pradhan Mantri Krishi Sinchayee Yojana, entailing an investment of `50,000 crore over a period of five years.Earlier, Deputy Governor of the Reserve Bank of India H R Khan dwelt upon about structural weaknesses in the agriculture sector and measures to deal with increasing farmer indebtedness, while Dr. H K Bhanwala, CMD, NABARD spoke about role of micro-finance and contribution of increased institutional credit in mitigating agricultural distress.
On the occasion, Jaitley launched the ‘NABARD Rural Economy Tracker’ which gives a real-time overview of rural development in India on the website www.nabard.org.