India is on track to overtake China with annual growth of more than 8 per cent as the government starts its second year in power by accelerating plans for economic reform and pledging to resolve tax disputes with investors, according to the country’s finance minister.

Rounding on critics who have complained about a lack of “big bang” reforms, Arun Jaitley said in an interview with the Financial Times that he was planning a “huge” public investment programme and the launch of “strategic” privatisations.

“We have restored the credibility of the decision-making process in India,” he said. “Our growth rates are much faster, our job creation is faster, our fiscal deficit is totally coming under control, our current account deficit has never been as good.”