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'Reasonably possible' to 'practically impossible': Jaitley on double-digit growth in near-term

Last year, Jaitley had said that India's potential lies in 10% growth rate.

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Asserting that it is "extremely difficult" to achieve double-digit growth in the current global environment, Finance Minister Arun Jaitley said there is scope for improvement from the current rate if reforms are carried on.

"I don't claim that it is possible in this global environment to come anywhere close to double-digit growth.

It's extremely difficult, it's practically impossible to do that," he said at the India Today Conclave here.

Last year, the Finance Minister, after coming back from the second leg of his nine-day US tour, had said "This (10% growth rate) is reasonably possible. That is where India's potential is".

ALSO READ: 10% growth rate is not impossible, says Finance Minister Arun Jaitley

"It is important that we reach that target, but it is more important that we sustain it for a couple of years," he'd added at the same time.

Now, the finance minister, given various variables has said, India can atleast aim high and improve.

"For example, if you carry on some of the pending reforms and if you concentrate on some of these areas like manufacturing, investment in agriculture etc... if you could improve health of the banking system so as it supports growth, your private sector becomes more oriented to investment.

"If you are not able to go anywhere close to double-digit growth, the prospect of greater economic activity and improving upon your present rate is always there... the idea is to improve upon our growth rate even in the adverse global environment," he said.

Terming the current 7-7.5% growth "impressive" compared to the global growth, Jaitley said, "compared to our own inherent ability, one always feel that India can do much better."

If India has to increase growth by 2% from the present capacity, he said, a combination of several factors would be required including a supportive global environment and increasing share of manufacturing in economy.

"Domestically, the maximum potential to grow in terms of sector is agriculture... there is huge potential for growth...we can do much better in manufacturing if we develop an expertise for low-cost manufacturing considering the wage bill in China is going up and ofcourse you need reform temperament in the country," he said.

The constituency that support reforms is much larger now, he said, adding, it is much bigger than which one which obstructs reforms.

"Therefore, slowly we are moving in the right direction and if all the policy changes, taxation and otherwise do come about in India, you have better monsoon, step up investment in agriculture and private sector... and the supportive global environment, it is possible for India to get a significant amount of growth," he added. 

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