Delhi Result Will Not Slow Down Economic Reforms: Finance Minister Arun Jaitley

A near wipeout in the Delhi election this week will not sidetrack the government's reform agenda, Finance Minister Arun Jaitley said.

At the end of the month, Mr Jaitley will present the government's annual budget.

"The government  is determined to go ahead on the path of economic reforms which will generate investment, bring jobs, alleviate poverty," said Mr Jaitley, just days after his party, the BJP,  amassed a humongous defeat in the capital, winning just three seats. The Aam Aadmi Party headed by Arvind Kejriwal racked up a record win for the country, winning every one of the remaining constituencies in the 70-seat legislature.

"The fact that four elections have been won, and one has not been won, is no ground to believe that there will be a slowdown in the process we have undertaken," said Mr Jaitley.

Since Prime Minister Narendra Modi swept to power in May, the Delhi result has been his party's sole electoral setback. It has placed first in three of four states that have voted since he came to office.

Analysts have suggested that the BJP's pulverising defeat in Delhi may be partly the result of the premier's development agenda being overshadowed by controversies created by hardliners within his party. A spate of remarks from BJP lawmakers have targeted religious minorities. The last session of Parliament was stalled by a united opposition which demanded a statement from the PM on the ghar wapasi campaign where right-wing groups affiliated to the BJP conduct the conversion of Muslims and Christians to Hinduism.

The government was then forced to use ordinances or executive orders to clear important reforms; it lacks a majority in the upper house or Rajya Sabha where the opposition blocked legislation.

The economy grew an annual 7.5 percent year-on-year in the quarter through December, higher than 7.3 percent growth recorded by China in the latest quarter, after the government's statisticians changed the way they measure it.