Gandhinagar: Union Finance Minister Arun Jaitley today said that the long awaited recovery of the world economy after prolonged recession has started to take place but it was also facing an increasing possibility of disruption owing to inward looking policy of some developed countries.

Addressing the Inaugural session of the AGM of the African Development Bank Group here in presence of Prime Minister Narendra Modi and many eminent leaders including 4 head of states/former heads, Jaitley said that the world was passing through uncertain times but the economic activity has finally started to taking up after a prolonged spell of recession.

He said that that the global economic growth rate last year was 3.5% while it was likely to improve to 3.6 % this year. ‘But at the same time there was also an increasing possibility of disruption in it owing to the inward looking policies of some advanced economies,’ he added citing his ‘mixed’ experience during his recent US visit.

Jaitley, however said that both Africa and India were doing well on economic front and the century would not only be of Asia alone but of Africa as well.

He said that one third of the humanity is represented by India and Africa, who have a strong relationship and would further cement. He said that the GDP growth rate of India in FY 2017-18, was projected to be at 7.7%. The government has taken many steps including less-cash initiatives, reforms in budget process and liberalization of FDI policy to improve the economy.
‘Africa has also been doing well recently. So the century will not be of Asia alone but will belong to both Asia and Africa. The continent has seen a growth rate of 3.4% this year. The middle class there was expanding and its aspirations as well as spending capacity was also expanding which will give a further boost to economy. Both India and Africa should navigate through these times together as part of south-south cooperation without imposition of any conditionality,’ he said.

The FM said that India’s engagement with Africa was increasing. it was not just a co-incident that Indian president, vice president and prime minister have visited 16 African countries in the recent past and there was no single African country which was not visited by an Indian minister. He also mentioned about the $10 billion line of credit to Africa.

He also said that while talking about the high 5’s of AfDB including feed Africa, better the lives of Africans, it seemed that as if it was a programme of India.

Jailtely said that there was huge untapped potential in the field of agriculture in Africa. ‘Africa is home to 60 % of the arable land of the world but it only produced 10% of food-grains. On the other hand India which was home to 17% of world population has only 2% of the land mass,’ he said.

He said that the horizon of India-Africa cooperation was expanding and it would further strengthen.

DeshGujarat