India's finance minister says reform will take time

Indian Finance Minister Arun Jaitley said yesterday structural reforms to Asia's third-largest economy could only progress slowly, adding that he backed relaxing labour and land laws hated by business, along with more privatisation.

Speaking to an audience of foreign investors, Jaitley said people still needed to be convinced that making it easier to hire and fire workers would create jobs, and did not set deadlines.

"There is a lot that has to be done … I am quite satisfied with the beginning we have made but it's a long journey," Jaitley told the Indian edition of the World Economic Forum.

He cautioned against rushing into Big Bang reforms that could trigger a political backlash and derail the government's agenda.

"Reform is the art of the possible," he said, while promising not to take decisions that would send negative signals to investors.

Prime Minister Narendra Modi came to office in May with a mandate to create jobs and kick-start the economy after a long period of low growth.