“There is no doubt that India needs to grow very rapidly to be a
leading power (of the world). My own view is that India’s
potential growth is somewhere between eight to 10 percent,”Chief
Economic Adviser (CEA) Arvind Subramanian has said.
India’s economy has the potential to grow between eight to 10
percent if the country continues the pace of reforms, Arvind
Subramanian has said.
In Washington ahead of the US visit of the Union Finance
Minister Arun Jaitley to attend the annual spring meeting of the
International Monetary Fund and the World Bank, Subramanian said,
“It’s worth noting that India has been growing at 6 to 6.5
percent for the last 35 years.”
“It would place India among sustainably fastest growing economy
and actually among democracies, non-oil countries…So India’s
economic transformation has been pretty good,” he said.
Subramanian said achieving a growth rate of eight to 10 percent
is feasible on a number of factors including the continuation
and pace of reforms and global environment that promotes exports.
“I certainly think it is feasible provided we continue the pace
of reforms at a reasonable pace,” he said.
“My own view is that if you continue with the current pace of
reforms, get a few more things done, eight-10 percent growth is
really realisable,” the top economic advisor said.
Subramanian noted that in the last one and half years there has
been progress made in terms of foreign direct investment (FDI).
“If we can maintain this pace of reforms, may be accelerated
India’s potential would be realised,” he said.
At the same time the top Indian economist said that eight-10
percent growth is also contingent on a reasonable external
“My own view is that no country does eight-10 percent growth
sustainably without its export growing at a significant double
digit pace,” he said.
“There is a very low possibility or probability that India can
grow eight-10 percent growth without rapid growth in exports. I
think, the possibility for India being different from these
nations is that perhaps India does not have to do manufacturing,
perhaps it can do a combination of manufacturing and services,”
Subramanian was participating in a panel discussion at Carnegie on
recent call by Prime Minister Narendra Modi for India to be a
leading power and a report authored by top American thinker Ashley
Tellis in this regard.