Chief Economic Advisor Arvind Subramanian said India’s economy has the potential to grow by 8 to 10% in the next two to three years. He, however, clarified that to achieve the double-digit figure, the country needs political stability and the world economy needs to pick up pace. Subramanian’s comment comes a day after the government reported India's 7.1% Gross Domestic Product growth in April-June, the slowest growth rate in the last six quarters.
While addressing an Economic Survey Outreach programme in Bhubaneshwar on Thursday, he made a comparative study between the growth rates of India and China, reported The Hindu. He said, “China has been growing at 10.5% for last 25 years. Over the next few years, China has to slow down. For India, on the other hand, we now have the opportunity to become a fast-growing economy.”
He explained that this fast growth can be achieved if one price is set for one product and the scope of the direct benefit transfer model is expanded. He also lauded the government for passing the bankruptcy law, saying it was important “because in our economy, unviable enterprises were continuing to survive for long, rather than exiting”.
Moreover, the chief economic advisor told Economic Times that he will submit his preliminary findings on inflation in pulses to the government next week. Although he refused to divulge any detail of the report, Subramanian said, “At the heart of the inflation in pulses is production, not hoarding. That's why we should boost the production of pulses."
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