India needs 'boom period' to achieve 10% growth: Jaitley

India needs 'boom period' to achieve 10% growth: Jaitley

"Thats the economic roadmap that we have for us", he said.

"If we had come out with lower rates, it would have resulted in inflationary pressure immediately", he said.

On achieving the double digit growth rate at a time when it the economy is moving at a snail's pace, he said, "Achieving a 10 per cent GDP growth rate is very challenging and it will not only depend upon domestic factors but how the world moves". "It will also depend on how the world is moving", Jaitley said here at the HT Leadership Summit. There are expectations of a rebound in economic activities after GDP growth of a mere 5.7 per cent in the first quarter of the fiscal.

"India has standardised itself ordinarily for a growth rate between 7-8 per cent". Jaitley said the Goods and Services Tax (GST) started with different tax rates and they have rationalised rates on many items. He added that future rationalisation of GST rates would depend on revenue collections.

And he also said that only sin goods and luxury goods will be kept under the 28 percent GST slab. "India will need Rs. 50 lakh crore investment in next 5 years".

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Observing that inadequate infrastructure is a major hindrance in the growth, he said, the government has been increasingly raising allocation for development of the sector. India has spent Rs 60 lakh crore in infrastructure during 2007-17.

"We have already thinned out the 28 per cent bracket, it can thin down more".

Old era of double-digit inflation over: Observing that the country has moved away from the old era of double-digit inflation, he said, "Our statutorily fixed target is four per cent".

Jaitley, however said that India's one of the great challenges is that the country is largely a tax non-complaint society. Saying tax non compliant is impediment on country's development, the Finance minister stressed that government is making more efforts to make system more compliant. "We have been able to keep our current account deficit under control, and over the last few years, India has had exemplary performance in terms of being able to bring down its fiscal deficit", he said.

Morgan Stanley, however, said that growth is expected to take-off from here with a recovery in the private sector capital expenditure underway from 2018.