May 31 2020
Strong fundamentals must for high growth: Arun Jaitley
28 August 2018

‘India facing challenges from external front like oil prices’

The desire to achieve a high growth rate must be accompanied by strong macroeconomic fundamentals, said Arun Jaitley, finance minister, on Monday.

Addressing bankers during the annual general meeting of the Indian Banks’ Association, Mr. Jaitley said that sacrificing the fundamentals for temporary spurt in growth was not desirable, adding that growth with fiscal prudence was necessary.

‘Indiscriminate lending’

In this context, he pointed out to the ‘indiscriminate lending’ by banks in the past that funded projects which were not able to service those debts.

The Finance Minister, who expressed the hope that the country could be the fifth largest economy by next year (from the sixth at present), said the challenges that the country was facing were mostly from the external front like volatile oil prices and trade wars.

Given the kind of economic activity happening in India, Mr.Jaitley said that the role of the banking industry was going to be vital in strengthening the economy itself.

In the context of tackling the bad loans, he said that the Insolvency and Bankruptcy Code (IBC) had redefined the creditor-lender relationship in India. The need now was to expedite the process, he said.

Mr. Jaitley said that the amendment to Section 29A of Prevention of Corruption Act would prevent defaulting promoters from bidding.

Stating that a pre-liberalisation Prevention of Corruption Act could not attract penal provisions for corruption, the Finance Minister said that the new law empowered the civil servants, bankers and other decision makers.



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