Finance Minister Arun Jaitley said the Indian economy has seen significant improvement in macro-economic stability despite the uncertain global economic situation, on a day when his ministry’s mid-year review sharply lowered the fiscal’s GDP growth rate estimate to 7-7.5 percent.
“The economy has witnessed significant improvement in the macroeconomic stability in terms of low levels of inflation, fiscal deficit and current account deficit,” a finance ministry statement quoted him as saying at a meeting here of the Parliamentary Consultative Committee.
He said India’s achievement of being among the fastest growing economies of the world is “creditable considering that the global economic situation continues to be uncertain transmitting negative spill-overs, because of which emerging markets and developing economies have, in general, become more vulnerable and fragile”.
A slew of policy measures and structural reforms have been effected in the last 19 months, Jaitley said, adding that reforms have addressed the critical problems of stimulating and stabilising the economy.
India recorded 7.3 percent growth rate in 2014-15, which was higher than 6.9 percent growth achieved in 2013-14 and 5.1 percent in 2012-13, he said, adding the growth rate compares to the 3.4 percent expansion in the global economy and 4.6 percent in emerging markets and developing economies.
GDP growth was 7.2 percent in the first half of current fiscal as against 7 percent in the second half of last year. Growth has improved from 7 percent in the first quarter of 2015-16 to 7.4 percent in the second quarter of the current fiscal.
Meanwhile, Minister of State for Finance Jayant Sinha told the Lok Sabha on Friday that the government said it is taking steps to promote the rupee in global markets and increase its competitiveness in respect of other currencies.
He said that there is “no definitive roadmap set for internationalisation of the rupee since it would require full capital account convertibility.”
There are restrictions on the rupee being used for international transactions, he added.