Finance Minister Arun Jaitley has underlined the need for a judicious mix of fiscal, monetary and structural policies by major economies to deal with the heightened uncertainty on account of Brexit. Jaitley said that Britain's decision to exit from the European Union has further heightened uncertainty, market volatility and risk-averse behaviour.
Jaitley who could not attend the first annual meeting of the Board of Governors of the New Development Bank (NDB) held in Shanghai, because of the ongoing Parliament session back home, said in a written speech read out by Joint Secretary in the Finance Ministry Raj Kumar that governments, central banks and regulators have to mitigate the pressure of such vulnerabilities through judicious mix of fiscal, monetary and structural policies.
He further said that India is following the approach of 'Reform to Transform' through far-reaching structural reforms. “We have taken several initiatives to boost investment climate and improve the ease of doing business.”
Jaitley outlining the challenges said the current global economic context is far from being robust and is marked by a modest pickup in some advanced economies from their low levels of growth. He also said that decline in growth in emerging markets and developing economies, increased financial sector volatility, and, in general, a downward revision of global growth projections by the International Monetary Fund (IMF) also pose challenges. Meanwhile, India has called for the NDB-set up by the BRICS countries to develop a strong pipeline of projects, with focus on cost-effective energy generation, transport projects that reduce regional inequality and promote inclusive growth, and urban infrastructure projects.