Cost of money has to come down to achieve 8-10% growth: Arun Jaitley

Zee Media Bureau

New Delhi: Finance Minister Arun Jaitley on Saturday said that cost of money has to come down if India has to achieve 8-10 percent growth.

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"If we have to jump to 8 percent plus or 8-10 percent growth bracket than all the stalled projects (have to be revived) and cost of capital have to go down," Jaitley said.

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Although Reserve Bank reduced the benchmark interest rate by 0.75 percent in three tranches since January, it maintained the status quo at its policy action earlier this month despite pressure from industry and Finance Ministry. The next monetary policy is due on September 29.

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The government, he said, was working on the process of ease of doing business, bringing in bankruptcy law, rationalising taxation and introducing proper public procurement policy.

These are couple of areas on which work is in advanced stage, Jaitley said.

He also added that stalled projects have to be expedited and they will lead 'Make in India' programme.

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As Government weighs various options to wriggle out of the contentious land bill, Jaitley said that wait for 48 hours for decision on Land Ordinance.

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Jaitley further stated that the government and RBI are on same page on monetary policy committee. Under the current system, the Reserve Bank Governor is appointed by the government, but controls monetary policy and has veto power over the existing advisory committee of RBI members and outside appointees that sets rates.