New Delhi: Union Finance Minister Arun Jaitley on Tuesday said that indirect tax regime, demonetisation and new Insolvency and Bankruptcy Code (IBC) will help in India’s growth rate. He said that IBS, GST and demonetisation have helped in the assessment of the financial capacity. He said this will help India sustain a growth rate of around 8 per cent. Also Read - India at Doorstep of Economic Revival, Says RBI Governor
Asking banks to ensure clean lending to justify the trust entrusted in them, Jaitley said that there is a need to trust the banking system to meet the needs of the economy. Speaking at the annual review meeting of the public sector banks in New Delhi, the Finance Minister said, “Banks must strive to be seen always as institutions of clean and prudent lending.” Also Read - Even Pakistan, Afghanistan Handled Covid-19 Better: Rahul Gandhi Takes a Dig at Govt Over IMF Projections
“With the recent amendment to the Prevention of Corruption Act, there now need not be any apprehension in the minds of bankers in supporting investments that are in the best interests of the economy, the nation and the banks,” he said, adding, “A growing economy will also help banks grow in strength.” Also Read - India's Public Debt, Stable Since 1991, To Jump to 90% Due to COVID-19 Pandemic: IMF
Prime Minister Narendra Modi, on September 20, had said that with the massive employment generation in the IT and retail sectors, the Indian economy will grow at over 8 per cent. He had also cited the rollout of GST among other bold decisions taken by the government to help the economy grow.
Earlier this month, PM Modi said that the size of Indian economy will double to USD 5 trillion by the year 2022 with manufacturing and agriculture contributing USD 1 trillion each. Citing the merger of Dena Bank, Vijaya Bank and Bank of Baroda, PM Modi said that the government will not shy away from taking tough decisions in the national interest.