Finance Minister Arun Jaitley addressing a press meeting today

Finance Minister Arun Jaitley on Friday said India's economy has come a long away from the general environment of gloom that existed a year back. There's a sense of excitement about India's economy, one year after Prime Minister Narendra Modi took charge of the government, he added.

However, most of the questions that followed Mr Jaitley's long address, in which the finance minister highlighted the achievements of the Modi government, were related to recent tax controversies and delays in crucial reforms such as GST and the land bill.



Mr Jaitley offered no new insight in the minimum alternate tax or MAT row involving foreign investors. He termed the MAT controversy as a "legacy" issue and said the government's effort is to resolve the issue quickly.



"It would have been better if the judicial authority in 2012 could have reached a resolution. I have stopped it (MAT on foreign investors) from April 1, 2015. However, old issues will have to be resolved through judicial process," the finance minister said



Analysts have attributed the steady capital outflows from domestic stock and debt markets over the last one month to the MAT row.



Mr Jaitley blamed the opposition for creating roadblocks in the goods and services tax (GST) bill, which he termed as the "most important" indirect tax reform in the history of India. The GST and the land bills will be taken up in the next parliamentary session, he added.



The finance minister reiterated his Budget commitment to cut the rate of corporate tax to 25 per cent from 30 per cent over the next four years. Lower taxes can be made possible by phasing out exemptions, which will also remove discretions, he said.



"Hugh tax rates are not investor or economy-friendly," Mr Jaitley said.



Highlighting the exemptions that the government has announced for individual tax payers, the finance minister said people who pay taxes have more money in their pockets and can save more.



Agenda for Next Year

Passage of GST and land bills, restart of stalled projects, bankruptcy code, etc. will be the focus of the government in the coming year, he added.