Even though slowdown appears to hit private investment, consumption and exports, fiscal and monetary tools could be used to tackle the problem, said a noted economist. The next government should focus on turning India into an export and private sector driven high growth economy, Principal Economic Advisor Sanjeev Sanyal told ET Now in an interview. Besides, there is a need to lower real interest rates and resolve liquidity issues, he added. The last term of the government was devoted to bring about major economic reforms such as GST and IBC to create framework for delivery, infrastructure and governance, he said, adding, the next should be for growth driven by exports and private investments.
Adding, Sanjeev Sanyal said that the ongoing US-China trade war provides an opportunity to boost India’s competitiveness. Since India’s share in global exports is very less, it could use the opportunity to expand the same, he noted. India could use the space to leverage in building scale and size, he also said.
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Meanwhile, in an interview with CNBC TV18, NITI Aayog vice chairman Rajiv Kumar said that India needs to double its exports by 2025 with a target to regain growth of 20 per cent in exports. Echoing Sanjeev Sanyal’s views, he said that there is a need to take measures to increase India’s share in the global trade. Commenting further, he said that the economy can’t thrive if there is weak demand and consumption slowdown. On being asked about the idea of possible retaliation to the tariff hike by the importing nations, he said a tit for tat approach to raising tariffs may not be the soundest to pursue. It is not an ideal model for the Indian economy, he added. On Thursday, in general election 2019 result, BJP-led NDA government received a massive mandate from the people and is all set to start with its second successive term at the centre.