India economic reforms to stay |
Indian Finance Minister Arun Jaitley said the country was determined to go ahead on the path of economic reforms despite his party`s debacle in the Delhi Assembly polls. Jaitley made the remarks at a joint press conference with US treasury secretary Jacob Lew at the end of 5th Indo-US Economic and Financial Partnership meeting. Jaitley`s comments assume significance against the backdrop of the annual budget to be presented in a fortnight. Investors and analysts worry whether the government will resort to populist means. Jaitley said reforms would bring in investment, generate jobs, improve the quality of life of people and also help alleviate poverty. Meanwhile, retail inflation inched up in January as the statistics office changed the base year but hovered within the central bank`s comfort levels, while industrial output growth remained sluggish in December, keeping alive hopes of interest rate cuts. Consumer prices rose 5.1% in January, higher than the previous month`s 4.3% after the base year was changed from 2010 to 2012. Inflation remains in the comfortable zone. RBI is expected to deliver rate cuts in the range of 50-75 bps in the next fiscal.
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