India on Sunday assured the global community that policies of the new government will deepen the reform process to put the economy on sustainable and balanced high growth path.
“As you are aware, India has elected a new government. We will be strengthening our growth strategies as per priorities of the new government,” India’s Finance Secretary Arvind Mayaram said at G-20 meeting in Australia.
“I am confident that this will be growth oriented and would deepen the reform process to put the economy on a high growth path which is in line with the G20 objective of strong, sustainable and balanced growth,” he added. He was making an intervention at G20 Deputies Meeting.
Mayaram, however, did not provide specifics saying the “reform measures” will be presented by Finance Minister Arun Jaitley in the forthcoming Budget. Jaitley will present the budget in Parliament early next month amidst high inflation, particularly in the food segment, significant fiscal deficit and subsidy bill.
The new government led by Prime Minister Narendra Modi assumed office in May after a comfortable majority in polls.
On Friday, government took a “difficult but correct” decision to hike rail passenger fares and freight charges. Modi had recently said that he will administer “bitter medicine” to revive the ailing economy.
The ruling BJP fought the elections on growth agenda at a time when the country's economy posted a sub-five per cent growth for two consecutive financial years.
Mayaram further said the global context is increasingly challenging and becoming less supportive for emerging economies growth prospects.
He said emerging markets are going through a phase of tepid economic activity, with some of them seeing significant ‘negative output gaps’.
The reasons for the slowdown have been partly structural and exacerbated by external factors especially increased volatility with unwinding of unconventional policies, he said.
“Recent developments in Iraq have created huge uncertainties with an overhang on the global economy. The volatility in petroleum prices have put pressure on the fiscal front of countries like India,” he added.