Revival of 7-8% growth in focus at pre-Budget meet – Times of India

NEW DELHI: The need to get back to 7-8% growth against the backdrop of global challenges, geopolitical tensions and to ensure that the country remains on track to reach developed nation status by 2047 dominated deliberations at a meeting of economists with PM Modi Tuesday.
At pre-Budget consultations under the theme – ‘Maintaining India’s growth momentum at a time of global uncertainty’ – the PM emphasised that the 2047 goal could be achieved with changes in mindset.
The PM’s remark came in the context of plans needed for grabbing opportunities that may open up for the country in the wake of a possible tariff war between the US and China and how India can benefit and be part of the global value chain.
Economists underlined the need to step up growth and offered suggestions on a range of issues, including employment generation, skill development, raising farm productivity, attracting investment and boosting exports.
Growth has slumped to a seven-quarter low of 5.4% in the July-Sept quarter of the current financial year, raising alarm among policymakers and triggering calls for a cut in interest rates.
Experts stress need to step up growth
The sharp slowdown in growth in the second quarter has also prompted several agencies, including RBI, to revise growth downwards. Sources said a significant part of the meeting saw experts reinforcing the need to step up growth and deepen reforms across sectors, from the farm sector to taxation reforms both on indirect and direct taxes. Economists suggested a range of reforms for the farm sector such as a robust value chain for vegetables including TOP (tomato, onion and potato). Suggestions were also made on strategies to deal with climate change and energy transition.
Issues linked to trade and exports were prominently discussed, with experts suggesting several measures including faster conclusion of free trade agreements, a strategy on tariffs and internationalisation of the rupee. For creating jobs, suggestions were made to deepen vocational training and inculcating dignity of labour.
An official statement issued after the meeting, which was coordinated by govt think tank Niti Aayog, said participants shared their views on several significant issues including navigating challenges posed by global economic uncertainties and geopolitical tensions, strategies to enhance employment, particularly among youth, and create sustainable job opportunities across sectors, strategies to align education and training programmes with the evolving needs of the job market, enhancing agricultural productivity and creating sustainable rural employment opportunities, attracting private investment and mobilising public funds for infrastructure projects to boost economic growth, creating jobs and promoting financial inclusion, boosting exports and attracting foreign investment.
FM Nirmala Sitharaman, Niti Aayog vice chairman Suman Bery, CEO BVR Subrahmanyam, and senior officials of the PMO and finance ministry attended the meeting. Experts who attended included Surjit S Bhalla, Ashok Gulati, Sudipto Mundle, Dharmakirti Joshi, Janmejaya Sinha, Madan Sabnavis, Amita Batra, Ridham Desai, Chetan Ghate, Bharat Ramaswami, Soumya Kanti Ghosh, Siddhartha Sanyal, Laveesh Bhandari, Rajani Sinha, Keshab Das, Pritam Banerjee, Rahul Bajoria, Nikhil Gupta and Shashwat Alok.