The Union Finance Minister Shri Arun Jaitley said though the Asia-Pacific region remains the growth engine for the world, there appears to be a softening in region’s growth rate from 5.9% projected last year to 5.7% each in 2016 and 2017. Notwithstanding, the global headwinds, Shri Jaitley said that India continues to maintain a high growth rate at 7.65 in 2015-16 compared to 7.2% in the previous year. While reiterating India’s commitment to partner in the development and poverty alleviation of the poorest countries of the region, the Finance Minister announced that the Government has increased its contribution under the ADF-12 of the ADB to US$ 40 million. The Finance Minister Shri Jaitley was addressing the Business Session of the 49th Annual General Meeting (AGM) of Asian Development Bank (ADB) held at Frankfurt, Germany, yesterday.
Outlining the India’s development paradigm, the Finance Minister Shri Jaitley stressed that the Government is following the approach of ‘Reform to Transform’ through far-reaching structural reforms. The Government has initiated several initiatives to boost investment climate and improve ease of doing business, the Minister added. The Finance Minister Shri Jaitley National Infrastructure Investment Fund (NIIF) has been set-up to stimulate investments in infrastructure. Similarly, several schemes such as Make-in-India, Startup India and Skill India are being implemented to encourage innovations, entrepreneurship and job creation, he added. The Finance Minister Shri Jaitley said that India’s massive financial inclusion program has enabled opening of over 200 million bank accounts for unbanked persons. India is using AADHAAR, a unique identification system, as a backbone for targeted delivery of financial subsidies and benefits, the Finance Minister added.
Speaking on the role of ADB, the Finance Minister Shri Jaitley said “as the Asia-Pacific region navigates its course amidst shifting tides in the global economic environment, ADB’s ability to make timely and valued contribution is also being tested”. The Finance Minister Shri Jaitley emphasized that ADB needs to become an agent of change through its support for innovative projects which may otherwise not happen through local intervention. He said that reforms such as empowerment of the Resident Missions of ADB, delegation and decentralization in decision-making are some reform imperatives. The Finance Minister called for continued emphasis on reforms to make ADB a bigger and better MDB.
On the sidelines of AGM, the Finance Minister Shri Jaitley had a bilateral meeting with Mr. Hans-Jaochim Fuchtel, Parliamentary State Secretary to the German Federal Minister for Economic Cooperation and Development. The Finance Minister expressed the hope that Germany would continue to play an important role in India’s fast emerging growth story through enhanced cooperation.
The Finance Minister of Bhutan Mr. Lyonpo Namgay Dorji also met the Finance Minister Shri Jaitley.
Mr. Takeshi Kunibe, President and Chief Executive Officer (CEO) of Sumitomo Mitsui Banking Corporation, Japan also met the Finance Minister Shri Jaitley. Both sides discussed SMBC/SMFC Business Strategy and the India Business Strategy.
The Finance Minister Shri Jaitley also spoke about India’s experience on how trade, technology and new business models are shaping Asia’s quest for good jobs at the Governors’ Roundtable. The Finance Minister Shri Jaitley also participated in the CNBC Panel Discussion on Asia Economic Outlook.
The Finance Minister Shri Jaitley was accompanied by a high level delegation comprising among others, Mr. Shaktikanta Das, Secretary, DEA, Government of India.
The Finance Minister Shri Jaitley has since returned home after completing his day’s official visit to Frankfurt.
