Expressing his optimism on good economic growth, Chief Economic Advisor (CEA) Arvind Subramanian has said that 8 per cent growth for Indian economy is easily doable in the next 10 years, provided the international market remain a cooperative. He said “the country is already growing at 7 per cent plus, so I think that 8 to 8 per cent plus growth for the next 10 years is imminently doable”.
Noting that India has grown at an average of 6.5 per cent in the last 35 years Subramanian said the expectations of big bang or radical reforms in India are “historically unreasonable standard” when the country is not facing any serious economic crisis and when power is dispersed within the Centre and among the Centre and states. He further noted that the higher growth trajectory and reforms will be led more by the competitive federalism of States.
Subramanian further said that change is coming in the country through measures of the Centre but more importantly through the dynamism from decentralisation or competitive federalism which will be helpful to the country. Stating that as more and more good governance works are getting rewarded in assembly elections in India, the higher level of political institutions should sustain higher level of growth.
Subramanian also said that there is no control over the exchange rate due to opening up of the economy to foreign capital flows over the last 15 years. He also said that the incremental reforms being pursued by the government, greater sharing of resources with the states and the India's mature level of political institutions should push higher growth. The Indian economy grew by 7.6 per cent in 2015-16 and the government is eyeing 8 per cent growth this fiscal. A good monsoon is expected to aid growth this fiscal.