The Modi government is working on measures to “dramatically improve” productivity of the economy and people that would help achieve a sustainable growth rate of 7-8%, making India a $5-trillion economy in 12 years, MoS for finance Jayant Sinha said. Addressing the Delhi Economic Conclave organised by the finance ministry, he said the government was working on four areas to achieve this goal, that includes steps regarding macroeconomic stability, creating world class infrastructure, improving ease of doing business, unlocking entrepreneurial energy and ensuring social security. “We need deep structural reforms, not tinkering at the fringes, to create five million jobs every year in the formal sector, ” said Sinha. He added that the government’s objective was to achieve 7-8% growth over the long-term that is non-inflationary.
The minister said the economic reform process was not a T-20 game in which one may try to hit a six on every ball. “One has to perform sustainably over a long period of time keeping the score board going up,” he said.
Official estimates suggest India’s economy would grow this fiscal by 5.4% to 5.9%. Growth had slumped below 5% in the last two consecutive fiscals.
IMF’s policy advisory committee chairman and Singapore’s deputy PM Tharman Shanmugaratnam, who attended the conclave, agreed that India needs to boost economy’s efficiency, but said the country has limited time. He pointed out that India’s economy has the largest unrealised potential in the world.