Economic fundamentals strong; need holistic reforms: Veerappa Moily

Press Trust of India, August 21, 2012

Stating the country’s economic fundamentals are strong, Corporate Affairs Minister Veerappa Moily Tuesday said there is need for “holistic” reforms, especially on the governance front.

“(Economic) fundamentals are strong… I think, the only question is reputation building and governance reforms need to be put in aggressively,” he said here.

Calling for holistic reforms, he said there are challenges while taking the economic agenda of the country forward. “If you take a step forward, then you know you are caught, if you don’t do it, then you get the allegation of policy paralysis,” Moily said.

He was speaking at a programmme on competition policy agenda in India and emerging challenges, organised by leading NGO ‘CUTS International’. “Our fundamentals are strong. ..We are addressing the problems such as retrospective taxation or GAAR,” he added.

After expanding at over 8 percent for two consecutive years, India’s economic growth fell to a nine-year low of 6.5 percent in 2011-12. In the current fiscal, the growth is likely to remain subdued due to deficient monsoon and global factors including the European debt crisis.

Further, Moily said there is need for effective implementation of competition policy since anti-competitive forces cause hurdles to growth.

Speaking on the occasion, Planning Commission Member Arun Maira said: “At this moment there is great mistrust in the public in the institutions of governance and in institutions of private sector as well.

“It is this mistrust in institutions of governance that brings the view that nothing can be done,” he said.

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