Jaitley underlines need to lower cost of business to up growth

Tags: News
To revive the investment cycle and boost growth, Finance Minister Arun Jaitley today underlined the need to reduce the cost of doing business and improve the country's business climate.

Jaitley, in a wide-ranging interaction with financial sector regulators, including RBI governor Raghuram Rajan and Sebi chief U K Sinha, took stock of the prevailing economic condition.

"There is the need to improve business climate and reduce the cost of doing business as important means for revival of the investment cycle," Jaitley told reporters after the 11th meeting of the Financial Stability and Development Council (FSDC).

"There were general discussions on the current financial and economic indicators, and also on any suggestions any regulator has with regard to the forthcoming policies of the government," he added.

The interaction was part of an exercise undertaken by the minister to consult various sectoral regulators ahead of the Budget presentation next month.

India's economic growth stayed below 5 per cent for the second year in a row at 4.7 per cent in 2013-14, mainly due to a decline in manufacturing and mining output. Growth remained subdued at 4.6 per cent in the fourth quarter of last year.

"There are high political expectations from the new government and the opportunity (is) now available for resolving long-pending problems facing the economy. There is a need for coordinated approach by all the regulators to achieve financial stability," Jaitley said.

Irda Chairman TS Vijayan, Forward Markets Commission Head Ramesh Abhishek and PFRDA's Officiating Chairman R V Verma, besides senior finance ministry officials including finance secretary Arvind Mayaram, secretary department of financial services G S Sandu, among others were also present.

Reaffirming the government's commitment to keep finances in check, the Finance Minister said he is against "slackening the vigil in the area of fiscal consolidation".

Asked about the government's view on the recently released report on governance of banks by P J Nayak committee, Jaitley said, "You will have to wait for our application of mind on these subjects."

The Nayak committee has recommended, among other things, bringing down government's holding in public sector banks below 51 per cent.

EDITORIAL OF THE DAY

  • Realtors must lower the ratio of capital value to rental income to entice buyers

    Real estate prices are likely to witness a correction in the coming festival season, according to a report put out in this newspaper on Monday, with p

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Undermining demographic dividend

Development and economic growth of nations is built upon the ...

Kuruvilla Pandikattu

Imperfection makes you more human

For all those who live in fear of making a ...

Shona Adhikari

Artistic focus on women's empowerment

The focus on the girl child remains an important one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture