Highlighting the country’s reform process and its ability to turn crisis into one, Chief Economic Adviser KV Subramaniam said that this decade will be India’s decade of inclusive growth, during which it will generate over 7 per cent annual growth on the back of strong economic fundamentals. will register an increase. The opportunity that helped him stand out from the rest of the world.
Expressing confidence in India’s economic potential, Subramaniam told the American audience in the corporate sector that “the fundamentals of the economy were strong even before the pandemic. There were only financial problems.”
“In my words, this decade will be India’s decade of inclusive growth. In FY’23, we expect growth to be in the range of 6.5 to 7 per cent and then accelerate further considering the impact of these reforms,” he said while addressing a virtual event organized by the US-India Strategic Partnership Forum (USISPF). Said while doing. Wednesday.
Subramaniam said, “I expect India’s growth rate to average over seven per cent in this decade.” During the current financial year, he said, the growth will be in double digits and in the next fiscal it may go down to 6.5 – 7 per cent.
The Economic Survey 2020-21, released in January this year, had projected a growth of 11 per cent in GDP during the current financial year ending March 2022. The survey said development reforms and easing of norms would give a supply-side boost. Infrastructure investment, boost to manufacturing through Production Linked Incentive (PLI) schemes, recovery of shortfall in demand, increase in discretionary consumption after the rollout of vaccines and increase in credit.
“When you look at the data itself, the V-shaped recovery and quarterly growth pattern really set the fundamentals of the economy. Looking ahead, the kind of reforms we have undertaken and the supply side measures that we have taken will actually enable strong growth not only this year but also further,” said the top Indian economist.
He said that various structural reforms including labor and agriculture laws undertaken by the government would aid the development. Subramaniam said from a long-term perspective that India is the only country that has undertaken so many structural reforms in the last 18 to 20 months.
“India really stands out from the rest of the world in its economic thinking, not only in terms of the reforms undertaken, but by converting the crisis into an opportunity,” he said. Noting that every other major economy has taken only demand side measures, Subramanian said, in contrast, India is the only country which has taken supply side as well as demand side measures.
He said that the post-Covid-19 economy in India will actually be very different from the pre-Covid-19 economy. He said that over the past seven years, the present Government of India has demonstrated its ability to be able to conduct welfare programs very well, cutting out the inclusion and exclusion errors and targeting them well.
“Because that has already been achieved, we now basically just have to have a macro-economic objective of having growth and development, not struggling with your inequality in equity, because these welfare programs do it well. process, will be able to reduce inequality.
Subramanian said, “…they will put money in the bottom half of the income pyramid and thereby reduce huge demand, aggregate demand and inequalities.”