1 min read.Updated: 15 Mar 2019, 01:40 PM ISTVrishti Beniwal, Bloomberg
India will continue to implement economic reforms irrespective of who forms the government, says CEA Krishnamurthy Subramanian
The chief economic adviser cites global slowdown, trade tensions as risks to Indian economy's growth, seen at 7% in FY19
Mumbai: India will continue to implement economic reforms irrespective of who wins the Lok Sabha Elections 2019 beginning next month, chief economic adviser Krishnamurthy Subramanian said, seeking to reassure investors about policy continuity in one of the world’s fastest-growing economies.
As reforms in the past few years—from tax to inflation targeting—start to manifest, the Indian economy’s potential growth rate will rise by 50 basis points to 7.5% to 8%, Subramanian said in an interview in New Delhi. He cited the global slowdown and trade tensions as risks to economic growth, which is seen at 7% in the year to 31 March.
“The goods and services tax (GST) has given us a template for reforms absent a crisis," Subramanian said on 11 March, referring to the nationwide tax introduced by Prime Minister Narendra Modi in 2017. “Global money cannot find at this point a better country than India."
Investors are starting to worry about the policy outlook and economic imbalances if Modi fails to return to power. Foreign direct investment (FDI) into Asia’s third-largest economy fell 7% in the nine months to December from a year earlier.