Jaitley believes India has potential to grow at 9-10%

Government has initiated a large number of reforms in its first year of governance to encourage investments and the country has the potential to grow at 9-10 per cent, Finance Minister Arun Jaitley said.

"I do believe that India has a 9 or 10 per cent growth potential. To achieve that we have to invest a lot into rural infrastructure and irrigation that's one area we can move up," he said.

Besides, he said, a lot of investment is required in the infrastructure sector so that it has beneficial impact on manufacturing.

"It's only then we can achieve a 9 to 10 per cent growth rate and once we are able to do it for a decade or so, we can lower poverty rate. It's only then I will feel excited about it," he said in an interview to CNBC TV in Baku, capital city of Azerbaijan.

Jaitley was in Baku to attend the annual meeting of the Asian Development Bank. The NDA government will on May 26 complete one year in power following last year's general elections.

"Never in the Indian history, we have had the government which in the first one year has undertaken such a large number of reforms," he said.

The government has opened up almost every sector for investment, he said, adding that whether it is domestic or international "there is an additionality of investment".

"We are trying as far as possible to ease our processes and when I say ease our processes, environment clearances are much faster, infrastructure projects are now pushed, people don't get harassed, there is no single whisper of corruption," he added.

On Goods and Services Tax (GST), Jaitley said, there is broadly consensus on the issue.

"I have convened several meetings of state finance ministers. I have spoken to most political parties and broadly there is a large consensus," he said.

"At the end of the day, it benefits the states. It's going to benefit India's GDP. It's going to facilitate a seamless transfer of goods and services across the country. It will increase quantum of tax collection, it will reduce harassment," he said.

Image: India's exports have grown around 10 per cent in 2014-15. 

Photograph: Reuters