New Delhi: A day after veteran BJP leader Yashwant Sinha took a jibe at Finance Minister Arun Jaitley over the current economic state of the country, his on Jayant Sinha has now in an interview to English Daily TOI has highlighted the positives of the Government stating that structrucal reforms like GST and demonetization were necessary to create “New India”.
Hinting out at the article written by his father, Jayant Sinha said, “Several articles have been written recently on the challenges facing the Indian economy. Unfortunately, these articles draw sweeping conclusions from a narrow set of facts, and quite simply miss the fundamental structural reforms that are transforming the economy.”
He further added saying, “Moreover, one or two quarters of GDP growth and other macro data are quite inadequate to evaluate the long-term impact of the structural reforms underway”.
Backing govenrment’s move of implementing GST and demonetization, Sinha said. “GST, demonetisation and digital payments are game-changing efforts to formalise India’s economy. Transactions that were taking place outside of the tax net and in the informal sector are now being brought into the formal sector. In the long term, formalisation will mean (a) tax collections go up and more resources are available to the state; (b) friction in the economy is reduced and GDP goes up; and (c) citizens are able to establish credit more effectively as transaction records are digitised.”
He further stated the moves being made by Government to bring about a revolution in Indian Economy, saying “Policy making across ministries has become thoroughly rules-based. Natural resources and licences are being allocated entirely through transparent auctions, eg for coal, spectrum and UDAN routes. The Bankruptcy Code will enable speedy resolution of stressed assets providing relief to NPAs in the banking sector.”
A streamlined, rules based FDI regime is inspiring confidence: FDI has accelerated from $36 billion in FY2014 to $60 billion in FY2017. Dismantling of Foreign Investment Promotion Board (FIPB) will make the economy even more open.
Sinha, who handles, the Ministry of Civil Aviation at present further justified the work being done by Goevrnment by providing current statistics, saying “There has been dramatic increase in air connectivity: 16 crore passengers flew in FY2017 compared to 10 crore passengers in FY2014. A significant contributor has been the affordable cost of long-distance air travel in the country estimated to be only Rs 5 per km, lower than auto-rickshaw fares.”
He summed up by saying, “Virtually every Indian will now have a basic safety net guaranteeing food, electricity, some employment, housing, a bank account, toilets, gas-based cooking, insurance coverage, micro-loans, and an all-weather road. In parallel small and large enterprises will be able to flourish in a transparent, rule-based environment that provides necessary facilities and financing. We are creating a robust new economy that will power long-term growth and job creation for ‘New India’.”