Finance Minister Arun Jaitley today said the country's economy is turning around, investor confidence is improving and inflation is moderating as a result decisions taken by the government recently to relax FDI norms and push manufacturing sector.

He said the manufacturing curve has turned, services sector is looking up and inflation has by and large moderated. Addressing a press conference in New Delhi this evening on the eve of completion of 100 days of Narendra Modi-government, Jaitley said, 5.7 per cent growth rate in the first quarter is encouraging and the impact will be much larger in the coming days.

He said, containing inflation, restarting growth and investment cycles and keeping fiscal deficit under control are the main priorities of the government.

Replying to a question, Jaitley said, despite low monsoon, there is no cause of worry as sufficient food stock is available. Currently, food stock in central pool is comfortable at nearly 620 lakh tonnes.

In a relief to common man, government is not thinking of abolishing subsidies given on LPG and kerosene anytime soon. Replying to a media query while addressing a press conference in New Delhi today, Finance Minister Arun Jaitley said that some elements of subsidies will have to remain as a large population living below poverty lines benefits from it.

However, he maintained that subsidies have to be rationalized . Jaitley said the government has asked the Expenditure Management Commission to come out expeditiously with recommendations on subsidies like those on liquefied petroleum gas and kerosene.

Listing decisions taken during the last three months, the minister said FDI restrictions in defence and railways have been eased, decision making hastened, special mechanism created to resolve tax disputes and steps taken to increase investment in manufacturing and infrastructure sectors.

He said, the government has an ambitious disinvestment plan which will be rolled out in the coming days. He also expressed confidence that government will be able to move towards a larger consensus on Goods and Services Tax with states and try to get the insurance bill through in the next session of Parliament.

On Supreme Court observation on coal blocks allocations, the Finance Minister said, it will move the system towards a fairer mechanism for allocation of natural resources.

He said, so far 2.14 crore bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana. Jaitley dismissed reports that the banks are going to bear the costs of the scheme saying there is a separate financial mechanism for it.

Refuting the allegations of centralization of power in the hands of Prime Minister, Jaitley said ministers enjoy large extent of decentralisation with accountability.