India’s Finance Minister Arun Jaitley said Monday its economy is expected to grow at least 7.3% in the current fiscal year, a faster rate than China, and that that government will work to pass a blocked tax reform.
“The Indian economy is expected to grow better than 7.3% — the level achieved last fiscal year – and even at a higher level next year,” Jaitley told investors at an Arab-India Economic Forum meeting in Dubai, reported Reuters.
Even though poor rainfall and drought has lowered demand in rural areas, Jaitley said the economy will still grow.
The latest government data shows retail inflation surged to a four-month high in October and industrial production grew at a slower-than-expected pace in September.
India eased foreign direct investment norms last week in 15 major sectors, including mining, defense and civil aviation in an attempt to speed up growth.
In an a bid to calm fears that the government’s reform agenda will face political opposition, Jaitley said he would persuade opposition parties to pass a business-friendly goods and services tax, that could add up to two percentage points to gross domestic product but is blocked in parliament, reported Reuters.