NEW DELHI: Expressing satisfaction with the government's direction on the economy, Finance Minister Arun Jaitley on Wednesday said, "We need to pursue one positive direction. Reforms are not about one sensational idea."
"I am quite satisfied with the beginning made by the government. We will take time to rectify the economy," Jaitley said. Stating that India is now being viewed as a global investment destination, Jaitley added, "People are now getting convinced that India is a place to invest in."
Criticizing UPA government's move to introduce retrospective taxation, Jaitley said, "Retrospective tax was a bad idea which damaged the economy." "We should not take a step which sends contrary signal to investors," Jaitley said. "Investors will look for a system that is fair," he added.
"A lot of work can be done within the political framework. Indian administers need to change their mindset," he said at the World Economic Forum in Delhi.
Praising Prime Minister Narendra Modi, Jaitley said, "I have seen his (PM's) interactions with the bureaucracy. He has made himself completely accessible to them. He has also given them freedom."
Meanwhile, World Economic Forum managing director Philipp Rosler has said that the government's approach to reform can help set the economy on a high-growth trajectory. "There is lot of optimism around the new government. It has a strategic vision, not just from economic point of view but overall society point of view-...They have taken the right approach to reform," Rosler told ET on the eve of the two-day India Economic Summit that begins in Delhi. "We now see a new engagement, a new hope, not just inside India but also outside among investors."
Rosler said the forum is receiving queries on its reports on India and it's a sign of the enthusiasm among foreign investors. He said the "standstill" like sentiment about India that prevailed before the elections, has turned around.
India's economy grew at 5.7 per cent in the April-June period, the fastest quarterly growth in over two years, bolstering hopes that the measures announced by the Narendra Modi-led government will auger well for the country.
Although several experts have questioned the lack of so-called big reforms, Rosler said the government has demonstrated that it has a long-term approach to reforms with some very "good reform ideas". Rosler, who has experience in politics, economics and health, said the country's GDP growth forecast has been lifted and this shows that right decisions have been made.
"Reforms are not instant coffee...You cannot achieve everything in one month or one year," he said. "The new government has shown that they have a long term vision and wants to go step by step.
(With inputs from ET Bureau)
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