TOKYO: India’s 7.6% GDP growth in 2015-16 is a tribute to public spending and the confidence of foreign investors in the country, finance minister Arun Jaitley said here on Wednesday.
“Their (FDI) investments have been highest ever even in the slowdown years,” Jaitley said at a function of the Institute for International Economic Studies.
Foreign direct investment (FDI) inflows into India touched a record level of $51 billion between April 2015 and February 2016, according to official data.
Jaitley said the country is on an “upward curve”, and a good monsoon, passage of the stuck goods and services tax (GST) bill and increased infra spending will further accelerate growth.
Roll-out of GST will convert India into one common market, prevent tax-on-tax and make goods and services cheaper, he said, adding that if the Congress does not come on board to help its passage, the government would have no option but to seek a Parliamentary vote.
“The whole world is looking at India as to when India rationalises its indirect tax regime,” the finance minister said.
The GST Bill has been approved by the Lok Sabha, and is pending in the Rajya Sabha, where the government doesn’t have a majority.
“The idea behind the GST is to make India a one common market... there will be no tax-on-tax. It will bring down prices, and help businesses,” the finance minister said.