FM Arun Jaitley says 7 per cent GDP growth not enough

Finance Minister Arun Jaitley said 7 per cent growth rate recorded in the first quarter of current fiscal is not just enough, though many thought it was a fair growth rate.

"When our first quarter results were declared, in the midst of a global slowdown, many thought that 7 per cent was a fair growth rate. But I must confess that it didn't bring too many smiles on our faces, because India has actually started feeling that 7 per cent is just not enough for us," he said while addressing investors in Singapore.

The GDP growth slowed to 7 per cent in the April-June quarter, from 7.5 per cent in the previous quarter, amid deceleration in farm, services and manufacturing sectors, as per CSO data released last month.

The government expects a growth rate of 8-8.5 per cent for full 2015-16 fiscal.

He said the government is boosting public investment in infrastructure sector to fuel growth and investment in railways would help push growth in other sectors, including steel.

"We have put in a lot of budgetary support into modernising the railways. In fact, if railways would spend all the money that is being available to us, we will probably be able to see a much faster impact on various other sectors such as steel, cement, employment, and so on," the finance minister said.

In a bid to boost growth, the government will divert its savings on the subsidy front towards irrigation and infrastructure sectors, Jaitley said.