Mumbai: The 75 basis points rate cut by the Reserve Bank since January will help boost growth along with structural reforms and thrust on infrastructure investments by the government, Union Minister of State for Finance Jayant Sinha said Thursday.
"We already had 75 basis points of interest rate cuts. So we are going to see that cyclical upswing that happens when rates come down and inflation is under control... That's the first growth driver," Sinha said at an event organised by Edelweiss and Wells Fargo.
Structural reforms such as higher foreign investment caps in insurance, defence and other sectors and progress on GST will also help attain higher growth, he added.
Increased focus on infrastructure investment, under which the government has increased the gross budgetary support to public infra projects by a whopping Rs 70,000 crore this year, shall also aid the growth process, Sinha said.
He added that even though the Narendra Modi regime inherited a weak economy it has been successful in getting it in a relatively better shape now.
The key focus of the government, as it seeks to make the high growth sustainable over a long-term, will be on road, railway and power sectors, Sinha said.
