Fastest-growing economy tag is here to stay: Jaitley

Double-digit growth in construction, manufacturing sectors to boost jobs

Union Minister Arun Jaitley said on Monday that 7.7 per cent growth in the March quarter has "firmly" established India as the fastest growing major economy and the future looks much brighter than the past.

Jaitley said that with structural reforms like demonetisation, implementation of the Goods and Services Tax (GST) and the enforcement of the Insolvency and Bankruptcy Code, India had two challenging quarters.

"Those who predicted a 2 per cent decline in GDP growth have been conclusively proved wrong," he said in a Facebook post: 'The Economy and the Markets Reward Structural Reforms and Fiscal Prudence'. "The fourth quarter results of GDP data showed a phenomenal 7.7 per cent growth rate and has established India firmly as the fastest growing global economy. This trend, according to experts, is likely to continue for the next few years," Jaitley said.

He further said that double digit growth in the construction sector, record FDI, manufacturing expansion and financial inclusion schemes have created jobs and opportunities for selfemployment.

He talks of the number of income tax returns growing by 25 per cent and corporate return by 17%, but does not show the gain in terms of money. He said the GST is now problem free and leading to higher tax collection, explaining how the higher revenues helps the government spend more on infrastructure, rural India and social sector.

"A distinguished predecessor of mine feared that he may have to live his future in poverty. We have enabled every Indian to be a part of the world's fastest growing economy. The future looks much brighter than the past. This trend is likely to continue for some years," he said. He added: "We must remember that the economy and the markets reward structural reforms, fiscal prudence, and macro-economic stability.

No cut in excise on oil

Jaitley urged citizens to pay their due share of taxes "honestly" to reduce dependence on oil as a revenue source, and virtually ruled out any cut in excise duty on petrol and diesel saying it could prove to be counter-productive.

While salaried class pay their due share of taxes, Jaitley said "most other sections" have to improve their tax payment record, which is keeping India "far from being a tax-compliant society".

"My earnest appeal, therefore, to political leaders and opinion makers ...would be that evasion in the non-oil tax category must be stopped and, if people pay their taxes honestly, the high dependence on oil products for taxation eventually comes down. In the medium and long run, upsetting the fiscal maths can prove counter-productive," Jaitley said. Jaitley said in last four years, central government's taxGDP ratio has improved from 10 per cent to 11.5 per cent. Almost half of this, 0.72 per cent of GDP, accounts for an increase in nonoil tax-GDP ratio.