"We are committed to maintain overall macroeconomic conditions on a sustained basis so that the Indian economy is able to achieve and sustain growth of 8 percent and above," Jaitley said in his address to the International Monetary and Financial Committee.
"The Indian economy is now clearly on a recovery path," he said, adding India's growth recovered to 7.4 percent in the first three quarters (April-December) of 2014-15 as compared with 7.0 percent during the same period of 2013-14.
Advance estimates have also placed the GDP growth for the full year of 2014-15 at 7.4 percent.
Medium-term growth prospects have also improved following recent policy initiatives towards unlocking coal and other mining activity, liberalisation of FDI limits and a renewed thrust on public investment in infrastructure, which would help to improve the investment climate.
Inflation, which was a major concern for India during 2010-13, has moderated significantly, he said.
CPI inflation, which is now used as the main measure of headline inflation by the Reserve Bank of India (RBI), declined to 5.2 percent in March 2015 from 11.2 percent in November 2013, he said.
In terms of the flexible inflation targeting framework adopted recently, going forward, the RBI will seek to bring the inflation rate to the mid-point of the band of 4 +/- 2 percent, i.e., to 4 percent by the end of a two year period starting fiscal year 2016-17, Jaitley told the world body.
Noting that India has continued on the path of fiscal consolidation, he said the GFD of the central government, which was 5.7 percent of GDP in 2011-12, declined to 4.1 percent in 2014-15 and is budgeted to decline further to 3.9 percent in 2015-16.
India's current account deficit (CAD) declined sharply from 4.8 percent of GDP in 2012-13 to 1.7 percent in 2013-14 and is expected to decline further to 1.3 percent in 2014-15.

Latest News  from Business News Desk