Economic growth to gather momentum in coming quarters: Arun Jaitley

New Delhi: Finance Minister Arun Jaitley Wednesday said the economy is moving in the right direction and the pace of growth will gather momentum in the coming quarters on the back on-going structural reforms.

"The economic growth is moving in the right direction and its pace is expected to gather momentum in the coming quarters, once the impact of the on-going economic and structural reforms takes the firm root," he said in his address to Financial Stability and Development Council (FSDC).

"We have achieved macro stability to large extent but the growth moderation in the global economy and policy uncertainties among advanced countries pose risk to this outlook," he said at the 14th meeting of the Council.

The Council reviewed the major issues and challenges facing the economy.

FSDC is a high-powered body, whose members include RBI Governor, Sebi Chairman, IRDAI Chief and heads of other regulatory bodies. Besides, top Finance Ministry officials also attended the meeting as part of the Finance Minister's Pre-Budget Consultative process.

Emerging out of the meeting Pension Fund Regulatory and Development Authority (PFRDA) Chairman Hemant G Contractor said: "We reiterated our earlier request to make NPS a EEE (exempt,exempt,exempt) product."

To continue following up the path of fiscal consolidation along with quality spending of the public investment in order to achieve the higher rate of growth was among the suggestions made with regard to the forthcoming Union Budget 2016-17.

Other suggestions include sufficient provision of funds in the forthcoming budget for recapitalization of banks in order to clean-up their balance sheets and exemption from service tax to life insurance premium, an official statement said.

Besides, continuation of the government's contribution in the premium for Atal Pension Yojana (APY) for another year and exemption from tax at time of final withdrawal under NPS at par with PPF and EPF among others were made during the meeting.

The Finance Minister observed that FSDC has functioned in an effective and smooth manner in terms of achieving its twin objectives of ensuring financial stability while pursuing financial sector development in close coordination with all members.

He also appreciated the efforts of each member in terms of pushing the financial reforms agenda and policies as also strengthening rules and regulations.

Earlier, the Chief Economic Adviser Arvind Subramanian made a presentation on the state of economy.