A simplified GST and simplified system of direct tax, making land, labour and capital markets more efficient are among the various measures needed to ensure the country’s growth trajectory is 7-8% annually, said noted economist and chairman of the Economic Advisory Council to Prime Minister Bibek Debroy on Wednesday.
“These are the areas on which we should lay our emphasis and the research that we collectively do will educate all of us and help in making policy decisions much informed,” he said during a virtual address at the inaugural session of the 57th annual conference of The Indian Econometric Society (TIES) being held at University of Hyderabad (UoH) from January 4 to 6.
“Today, when India does 5.5%, there is despair all around. However, there has been an exponential rise in the per capita income. While the economic indicators after COVID have improved, there is still a lot of uncertainty in the world about what is happening in China, Russia-Ukraine conflict, and growth prospects in Europe and the USA,“ he said.
“Since India is not insulated, we will also face the volatility. Forex markets, capital markets and exchange rates will face volatility. Inflation rates will also be impacted by some uncertainty. Consumption, private investment, government expenditure and net exports are the four sources of growth,” he said.
While global market is not going to be rosy, “we tend to forget that when India did 9% growth, our exports had performed quite well. The net GDP ratio is also very high,” he explained. Dr. Debroy was confident of the country becoming a ‘transformed’ society by 2047 with a per capita income value of today’s dollars of US$ 10,000 and the average size of GDP e approaching close to US$20 trillion
Earlier, TIES president M. Ramachandran, UoH VC B.J. Rao, Dean, School of Economics Ramana Murthy, TIES Trust chairman V. R. Panchamukhi, B.R. Ambedkar School of Economics University, Bengaluru VC and TIES secretary N.R. Bhanumurthy, also spoke.
Leave a Reply