Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position, says Jaitley
GN Bureau | June 24, 2016
As Britain voted to opt out of the EU Friday, India has asserted that it is well prepared to meet its consequences.
“We are well prepared to deal with the short and medium term consequences of Brexit. Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position,” finance minister Arun Jaitley said in a statement.
Here is the full text of Jaitley’s statement:
We have just seen the final vote of the people of the United Kingdom in the referendum on whether to remain or leave the European Union. We respect the referendum’s verdict. At the same time, we are also aware of its significance in the days ahead and also for the medium term.
As I have often said, in this globalised world, volatility and uncertainty are the new norms. This verdict will, obviously, further contribute to such volatility not least because its full implications for the UK, Europe and the rest of the world are still uncertain. All countries around the world will have to brace themselves for a period of possible turbulence while being watchful about, and alert to, the referendum’s medium term impacts.
As regards, the Indian economy, we are well prepared to deal with the short and medium term consequences of Brexit. We are strongly committed to our macro-economic framework with its focus on maintaining stability. Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position.
As investors look around the world for safe havens in these turbulent times, India stands out both in terms of stability and of growth. India, as you are all well aware, is amongst the fastest growing major economies in the world today. Our growth and inflation prospects are further improving in the wake of the good monsoons that are now moving well across India.
The government and the Reserve Bank of India as well as other regulators are well prepared, and working closely together, to deal with any short term volatility. Our aim will be to smooth this volatility and minimise its impact on the economy in the short term. At the same time, for the medium term, we will steadfastly pursue our ambitious reform agenda—including early passage of the GST—that will help us realize our medium term growth potential of 8-9% and help achieve our objective of development for all.
The telecom regulator`s decision to cut international termination charges (ITC) to 30 paise from 53 paise will hit the incumbent operators (Airtel, Idea and Vodafone) the most. At present, the annual revenue of the industry from ITC is approximately Rs 4,500 crore. It may also, as incumbents say, impact go
Additional borrowing of Rs 20,000 crore, and not Rs 50,000 crore, is being considered by the government to meet financial needs. Upon a review of trends of revenue receipts and expenditure pattern, it has been assessed that an additional borrowing of only Rs 20,000 crore of gov
Defence minister Nirmala Sitharaman recently made her maiden visit to the Bangalore complex of Navratna defence PSU- Bharat Electronics Ltd and was briefed on both the ongoing and futuristic projects of the enterprise. Sitharaman was given a corporate overview covering th
State-owned NTPC will showcase its expertise and technical knowhow to execute power sector projects and explore business opportunities at the World Future Energy Summit to be held in Abu Dhabi. India`s largest power generation company with an installed capacity of over 51
Will India ever be able to achieve the dream of making best use of its demographic dividend? That question becomes relevant again with the release of the Annual Status of Education Report
The Campaign for judicial accountability and judicial reforms (CJAR) has written to five senior supreme court judges over alleged misconduct by chief justice of India Dipak Misra. The CJAR has appealed to the judges -- justices J Chelameswar, R Gogoi, MB Lokur, K Joseph, AK Sikri -- t