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GDP to grow further after 7-7.5% last year, Arun Jaitley says

By Reuters and Times of India.

India's economy grew an estimated 7-7.5 per cent last fiscal year and will keep growing this year, but the government will have to invest more in agriculture to keep up the momentum, finance minister Arun Jaitley said on Saturday. 

(Actually NO....he is not talking as an economist or a strategic development specialist, but as a populist politician who considers Indian agriculture as something sacred. There are many things in India which are sacred BUT worthless...COWS....pouring water over a stone structure which is shaped as a penis. 

The real engine for sustained growth for a $5.5 trillion economy like India (next 30-40 years) is PRIVATE/GOVERNMENT investment in INDUSTRY and INFRASTRUCTURE.....not agriculture. The potentials for agriculture are limited...the law of diminishing returns set in....the more you invest in it, the less you get out of it. Further, with mechanization and modernization of agriculture jobs are shed.

Whereas, with investment in INDUSTRY  and INFRASTRUCTURE, these two contribute to non-inflationary SUSTAINED REAL GDP growth. AND provides millions of jobs for Indians leaving the village and pouring into the cities.

What the BJP government has to do is abolish ALL legislation which hinder investment in these two vital areas....write new employment laws, industry laws, commercial tax laws and so on. That requires a lot of initiative and hard work on the governments part, and away from SUPERFICIAL populist grand standing and vote bank gimmickry.

How many hours does Modi spend at his desk in Delhi overseeing such strategic developments and legislation? )
Economists polled by Reuters last month pegged India's 2014/15 economic growth at 7.4 per cent and 7.8 per cent for the current year in terms of standard gross domestic product (GDP). Using a controversial new way of measuring GDP, India's statistics office has said the economy has overtaken China as the world's fast-growing major economy, at an annual 7.5 per cent in the fourth quarter of the fiscal year that ended on March 31.

READ ALSO: Indian economy clearly on recovery path, Jaitley says   

"The country's potential is not 7 or 8 per cent," Jaitley said after inaugurating three social security schemes. "The country's potential is to grow at double digit."

He said the agriculture sector was the biggest challenge for the government and that recent unseasonal rains have created an agrarian crisis.

"Once the resources with government grow, the biggest component of this will be diverted to agriculture and irrigation," Jaitley said.

READ ALSO: India needs sustained GDP growth of 9-10%, Jaitley says

Untimely rains over the past two months have damaged wheat and potato crops in parts of the country, driving some farmers to suicide.