The Indian economy is treading the upward curve in its growth trajectory and investors wanting higher returns should park funds in the infrastructure and manufacturing sector, Finance Minister Arun Jaitley said today.
As the economy clocked 7.6 per cent growth rate for the 2015-16 fiscal and core sector output was at a four-year high of 8.4 per cent, Jaitley asserted that these are not “stray figures” and an analysis of the pattern shows inherent strength in the economy.
“As growth would return to the world, consumer spending would pick up, hopefully the monsoons would be better, this trend which has been set in motion in India could be improved upon. That we are on an upward curve seems evident,” he said at a meeting organised by the Japan-India Business Cooperation Committee.
Jaitley said the Indian economy clocked 7 per cent growth in every quarter last fiscal despite an unsupportive global economy and two consecutive years of weak monsoon.
This has been possible because of increased public spending, India’s private sector and confidence which foreign investors reposed in India by investing the highest ever even in the slowdown years.
“I’m sure Japanese investors and funds and other agencies who are looking forward to gainfully employing their resources would certainly look at the India story which offers an attractive destination for investment,” Jaitley added.
He said besides infrastructure, the manufacturing sector is a top priority and provides a large opportunity to international investors to participate in the India growth story.
India offers flexibility to investors and the impetus on ’Make in India’, increased infrastructure and rural spending would help push growth.
“The returns that India offers are extremely attractive compared to other destinations, the magnitude and volume of investment required is much larger and it’s for a reasonable period of time that this investment is going to continue because the infrastructure deficit has to be met,” Jaitley added.