A country grows if states grow: Jaitley

Addressing the HT Leadership Summit on Friday in New Delhi, Jaitley said that this is a crucial phase for India. He said, "Global economy still patchy; India is coming back as a 'preferred destination'. We're at a crucial stage where we mustn't exhaust our patience."

Jaitley asserted that it was during the last two decades that India lost the momentum of growth.

Union Minister said, "Things did begin to change in 1991 and it's a great lesson that we have to learn from the last 23 years and the decades before that
the quality of political debate in India has to change."

Jaitley strongly pitched his support for reforms. According to him, everybody must understand that one must change with changing times adding that Rural infrastructure is an area where India have not concentrated in a big way, tribal areas remain neglected.

Jaitley said, "The quality of political debate in India has to change. The mindset of polity has to change - it can't be how can I block reforms. All institutions must change with the changed times."

He also asked the state governments to come together for the betterment of nation.

"State governments have to realize there is a very important role for them - the country grows if states grow. Extremely important that the credibility of the decision-makers is always there. The environment in the country has to be conducive for growth," he said.

He also assessed that politics should ke kept aside of development.

He said, "Once the political leadership is decisive, the rest of the decision-making also become simple. Governments taking commercial decisions can never do it in an oppressive environment."

But at the same time he praised the Indian political system by mentioning it as one of the strengths of the Indian system- being able to put across contrarian viewpoints publically.

Advocating for Centre's decision to open reforms in Railways and Defence sector, Jaitley said, "What was considered a touch-me-not area, we decided to open up the Railways. People have to decide whether they want a world-class railways or a ramshackle one. Defence sector seems to be a lot of interest in people teaming up with counterparts in India. We're on the verge of opening up our insurance sector a little more - and focus of debate has to shift from how do I block it to what are the consequences of my action."

"I'm principally for privatisation of sectors where the government can get out," Jaitley added.

He maintained that shortages remain in the medical sector. Despite a great desire to reform since 1991, structurally education is one sector that has been kept out of the reform process.

"Some of the more challenging decisions - like undoing tax decisions - and tax legislations are only in the lower house - undoing not the compensation part but the procedural part of the land law, I think is a big problem and will require a lot of effort," Jaitley added.

On black money issue, Jaitley informed that one has to be very cautious on this issue.

"One has to be cautious of adventurist solutions, legally follow the right course. As far as domestic black money is concerned, sectors in which it operates is not unknown - jewellery, real estate, mining..."

Jaitley asserted, "If we are able to take the right decisions, global investors are going to increasingly look at us. Pleasantly surprised that a large number of Japanese institutions are willing."

With this he urged all citizens to pay their taxes in time.

"Those who are supposed to pay taxes must pay, unsustainable demands won't get you revenue. Unsustainable demands earn us a bad name," Minister said.

"Indirect taxes do remain a challenge as our manufacturing sector has to grow," he said this while mentioning that moving on with the economy is a very serious subject, there's no need to sensationalise it.