High oil prices, weakening Indian rupee ‘temporary’ situation: Arun Jaitley
New Delhi: Finance Minister Arun Jaitley today said the falling rupee against dollar and rising oil prices were a cause of concern. But they were related to global reasons and a ‘temporary’ situation.
“If you leave these two transient situations (oil and dollar), India has consistently acquired 7.5 (+/-) per cent growth rate, and we comfortably achieve that. In today’s global situation, that is the highest in the world,” he said speaking at the Hindustan Times Leadership Summit.
India is capable of maintaining current growth rate for a decade or two. “India’s ability to maintain present growth rate for a decade or two is certain,” Jaitley said
“Huge avenues for growth for Indian economy in the next 10-20 years,” he added.
Measures taken to counter account deficit
He said government has already cut its borrowings by Rs 70,000 crore, done away with withholding tax on masala bonds for the moment and allowing oil marketing companies to buy bonds worth $10 billion.
“Some more steps are likely,” he said.
India to surpass China
Jaitley said India will surpass China in next two decades. He said the factor behind this growth would be the growing middle class.
“I think this expanding Indian middle class over the next 20 years and its purchasing power is going to globally impact not only the India story but will have its impact outside also,” he opined.
“Brick by brick poor people are being pulled out of their substandard lives,” he added.