India’s Goods and Services Tax will be front and center at prominent lecterns in America’s East Coast this week as Finance Arun Jaitley travelled across the Atlantic for the annual maha kumbh of economics in Washington D.C this week. Jaitley landed in New York early Monday EST.
Related links: Our coverage of run up to Fund Bank meetings
Finance Minister Jaitley will be making the India pitch at multiple events in the US East Coast for an audience mix of scholars, wealthy pension funds starved of decent interest rates in the Western world and a select club of Fortune 500 leaders.
Alongwith Jaitley at the IMF meetings will be Reserve Bank Governor Urjit Patel, Economic Affairs Secretary Subhash Chandra Garg and India’s Chief Economic Adviser Arvind Subramanian.
The week long US tour begins with the first leg in New York. The Finance Minister speaks at Columbia University October 10 on foreign direct investment at the School of International and Public Affairs (SIPA).
On October 11, it's yet another Ivy League lectern as Jaitley speaks at Harvard’s South Asia Institute on India’s tax reform before flying south to neighbouring Washington D.C for the IMF meetings.
In Boston, Jaitley is also slated to meet heads of pension funds at an investment round table before his Harvard lecture.
In Washington D.C, Jaitley is scheduled to meet US Commerce Secretary Wilbur Ross. Among the bilaterals pencilled in for the Indian Finance Minister are meetings with Finance Ministers of Italy and Iran.
India's industry body Federation of Indian Chambers of Commerce and Industry ( FICCI) is organising an interactive session with the FM on the state of the Indian economy and major reforms initiated by government on October 12.
Much of the action for the India team will ramp up the evening of October 12 and stay busy through much of October 13. These two days will see a burst of activity headlined by the FM’s speech at the IMF, the high powered G20 huddle, the central bank governors’ working dinner and meetings with multilateral development banks.
Together, the G20, which embraces large emerging nations as well as the established developed ones, represents nearly 80 per cent of global output.
Overall, even before the Wall Street-led financial crisis brought many economies to their knees in 2008, the lion’s share of global GDP came from China and India alone. That hasn’t changed in the last 9 years, despite hair splitting over GDP numbers within countries. Now too, pretty much all the growth in the world economy will come from outside the rich world. With international institutions looking increasingly out of sync with the many new normals all around, India’s exertions on economic fixits are likely to get outsize attention this week.
The much touted World Economic Outlook will be released this week which is likely to paint a rosier picture for the world economy and even that is likely in the under-5% category.
India, at last count, is all set for a shade under 7% growth this year.
Urjit Patel’s final word on the growth numbers, in an interview to Tamal Bandopadhyay, puts the numbers in context: “We have reduced our full-year growth forecast from 7.3% to 6.7%, but we feel, and our projections based on high frequency real economy indicators suggest, that growth will pick up in the third and fourth quarters (of the current fiscal year) to above 7%. Our full-year estimates are in line with OECD’s (Organisation for Economic Cooperation and Development’s) most recent estimate of India’s growth, but lower than that of the Asian Development Bank (7%).”
Details of the FICCI delegation with Finance Minister Jaitley in Washington DC: Dr Sanjaya Baru, Secretary General, FICCI, Pankaj Patel, Chairman and Managing Director , Zydus Cadila - Cadila Healthcare Ltd, Rashesh C Shah, Chairman, Edelweiss Financial Services Ltd, Rajan Bharti Mittal, Vice Chairman, Bharti Enterprises, Uday Shankar, Chairman & CEO, Star India, Harshavardhan Neotia, Chairman, Ambuja Neotia Group, Harsh Pati Singhania, Vice Chairman & Managing Director JK Paper Ltd, Y.K. Modi, Executive Chairman, Great Eastern Energy Corporation Ltd, Sudhir Jalan, Chairman & Managing Director, Meenakshi Tea Company Ltd, Vikramjit Singh Sahney, Chairman, Sun International Limited.
Updated Date: Oct 09, 2017 22:16 PM