BackStructural reforms necessary to achieve 7-8% growth: Minister
A sustainable non-inflationary growth rate of 7-8% can double the $2 trillion economy in 12 years, says Jayant Sinha
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New Delhi: Pitching for structural reforms, minister of state for finance Jayant Sinha on Wednesday said they were necessary for achieving a sustainable growth of 7-8% and making India a $5 trillion economy in next 12 years.
“If we take our $2 trillion economy and get it on the sustainable 7-8% growth rate then we have a situation when the economy doubles in 10 or 12 years to $4 trillion economy. If rupee strengthens we may end up getting closer to $5 trillion economy," he said while addressing the Delhi Economics Conclave.
Sinha also made a strong pitch for “deep structural reforms" to achieve a sustainable and non-inflationary growth of 7-8% over longer period of time. “We also need to get the economy up to a long term growth rate of 7-8%, it will have ups and downs. But ultimately long term growth rate for the Indian economy has to be 7-8%," he said.
Sinha said there was a need to control inflation at 4-6% over the years. Listing the priorities before the government, he said, there is a need to pursue macroeconomic stability, build world class infrastructure, unlock entrepreneurial energy and put in place social security system.
Sinha also made a case for supply side revolution to enable the country dramatically increase its growth potential. As per official estimates, economic growth in the current fiscal ending March 2015 would be between 5.4 and 5.9%. The growth had slumped to sub-5% in the earlier two consecutive fiscals.
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