Jaitley said that it was reckless lending by banks during the boom years in the previous government that had led to accumulation of such huge NPAs in the banking system.
Jaitley's remarks came after TMC MP Saugata Roy said the country's growth rate plummeted to an all-time low of 5.7 per cent in the first quarter of 2017-18 and showed only a small rise in the second quarter.
Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors.
India’s ascent is part of a trend that will see Asian economies increasingly dominate the top 10 largest economies over the next 15 years, the 2018 World Economic League Table notes.
The earlier system was a myriad of central and state taxes where the movement of goods was slowed down by products being taxed multiple times and at different rates.
According to Nomura's Composite Leading Index, some growth consolidation is likely in the Oct-Dec quarter, followed by a sharp recovery in Q1 2018 due to ongoing remonetisation and improving global demand.
The top 0.1 per cent of earners capture more growth than all those in the bottom 50 per cent combined, says the World Inequality Report.
China's economic growth for this year was 6.8 percent, according to the report, putting it slightly ahead of India. But the growth projections for China is 6.5 percent next year and 6.3 percent in 2019.
The comments comes within days of the official data reporting an improved set of macro-growth numbers in the second quarter of 2017-18.
It also cut GDP growth forecast for 2018-19 fiscal year to 7.3 per cent from 7.4 per cent predicted in its September Global Economic Outlook (GEO).
He welcomed the 6.3 per cent growth rate in the July-September quarter but cautioned that it was too early to conclude that the economy has recovered.
The gross domestic product (GDP) growth had hit a three-year low of 5.7 per cent in the first quarter of 2017-18. It was 7.5 per cent in the September quarter of 2016-17.
According to data from the Central Statistics Office (CSO), the GDP for Q2 stood at Rs 31.66 lakh crore, or a growth of 6.3 per cent.
The GDP growth had hit a three-year low of 5.7 per cent in the first quarter of 2017-18. It was 7.5 per cent in the September quarter of 2016-17.
Analysts had expected an higher dataprint for the September quarter GDP, with some of them pegging it at 6.4 per cent, after the disappointing performance in the preceding quarter.
Jaitley said if GST rates were initially fixed at lower levels, it would have had an inflationary impact on the economy.
Raghuram Rajan was referring to rising populist nationalism and also agitation by powerful communities, including Patidar community in Gujarat which is feeling discriminated and is seeking reservation in jobs.
Asked why private investments are not picking up, Niti Aayog Vice Chairman Rajiv Kumar pointed out that most people use only the figure of credit offtake on public sector banks (PSBs) as the proxy for private sector investment.
Standard & Poor's on Friday maintained its sovereign rating on India stable at ‘BBB-’ while keeping its outlook for India stable.
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