New Delhi, June 1: “In the midst of global slow down our per capita income increased by 7.4 per cent. We met our target of fiscal deficit. What is more significant, revenue deficit has been down to 2.5 per cent,” Jaitley said. On external factors, he said oil and commodity prices effect the Indian economy.
“India being a net buyer has benefited from the regime in last over a year. And if the prices remain within the current range we have the ability to absorb although if there is any undue increase in prices its impact on both inflation and savings would be noticeable,” he said.
He said the GDP figures released yesterday have shown that there was an increased consumer spending which has its impact on the private sector as increased demand will enable them to fill up their capacities.
“Starting this week the fresh monsoon season in India begins and by all indications this is going to be a good season for monsoons. In last 100 years, India has never had three years of bad monsoons in a row. Met dept projections indicate it will be a bumper monsoon,” he said.
Better monsoon will push rural demand, leading to higher growth.
“Not withstanding weakened service export, to maintain 7.6 per cent in a year of slowdown is significant and I am sure if monsoons are as good as have been predicted along with all these factors, India has a potential to improve upon this year’s figure,” he said.
Also aiding was the growth in output of eight core sectors growing 8.5 per cent in April on the back of pick up in output of refinery products, fertilisers, steel, cement and electricity.
On the growth clocked in 2015-16, Jaitley — who is on a six-day investor wooing tour of Japan — said, there was improvement in the agriculture as well as the services sector.
“More importantly, there is a consumer demand and there is increased consumer spending,” he added.
Earlier, speaking at a meeting organised by Japan-India Business Cooperation Committee, he said investors looking
for higher returns should park funds in India’s infrastructure and manufacturing sectors.
“As growth would return to the world, consumer spending would pick up, hopefully the monsoons would be better, this trend which has been set in India itself could be improved upon. That we are on an upward curve seems evident,” he said.
