Finance minister Arun Jaitley on Sunday promised to go ahead with the amendment of the tough land acquisition law in a bid to boost the economy and make India a global manufacturing hub.
The minister said that the the ruling NDA government would go ahead with it even if the opposition does not support it. The government will also unfold its disinvestment programme in the next couple of days, Jaitley said.
The government is expected to take some major decisions in the forthcoming winter session of Parliament. The much awaited insurance bill seeking to raise the foreign direct investment limit to 49% from the current 26% and goods and services tax (GST) are likely to come up.
"Some changes may be necessary (to the Land Acquisition Act). We will first try to reach a consensus and if that is not possible we will go ahead and take the decision," Jaitley said at the India Global Forum meeting.
The Land Acquisition Bill, which was passed by previous UPA government seeks to fix fair compensation for farm land being taken over for industrial projects but has made land acquisition difficult which in turn is impacting projects.
Several states have also said that the process of land acquisition has become slow which is affecting infrastructure projects.
The issue needs to be addressed and the "obstacles" to the land laws would be required to change to develop smart cities. An allocation of Rs 7,060 crore has been made in the Union budget of 2014-15 for developing 100 'smart cities' in the country.
He added that the government aims to bring down its equity in public sector banks to 52 per cent.
"Economy was and is in a challenging situation and one of the principal challenges before us is to restore the confidence in the Indian economy, to expand economic activity and move towards increasing the growth rate," he said, adding that India's growth rate next year will be "a little better," he said.
If trend continues, India would soon be on a high growth trajectory soon, he added. The minister has also underlined that the government would follow a transparent and non adversarial tax policy.
"We have seen the challenges before the economy. So, a reasonable and rational tax policy (is needed). It can't be ultra aggressive with the tax payers," Jaitley said.