Tripartite pact of Centre, states & private sector can push growth above 7 pc: Economic Survey
New Delhi: The Indian economy can grow at a rate of 7 per cent plus on a sustained basis in the medium term if the country builds on the structural reforms undertaken over the last decade.
This requires a tripartite compact between the Union Government, state governments and the private sector, according to the Economic Survey tabled in Parliament on Monday.
Going forward the government’s focus must turn to bottom-up reform and strengthening the plumbing of governance so that the structural reforms of the last decade yield strong, sustainable, balanced and inclusive growth, it states.
“The medium-term growth outlook will happen in the context of the following global trends, namely, increased geo-economic fragmentation, a global push for self-reliance, looming climate change, rise of technology as the biggest strategic differentiator and limited policy space for countries across the world,” the survey observes.
The key areas of policy focus required in the short to medium term that it identifies include job and skill creation, tapping the full potential of the agriculture sector, addressing MSME bottlenecks, managing India’s green transition, deftly dealing with the Chinese conundrum, deepening the corporate bond market, tackling inequality and improving our young population’s quality of health.
The growth strategy for ‘Amrit Kaal’ is predicated on six key areas. First, there must be a deliberate focus on boosting private investment.
Second, the growth and expansion of India’s Mittelstand (MSMEs) is a strategic priority. Third, the potential of agriculture as an engine of future growth must be recognised and policy impediments removed.
Fourth, there is a need to secure the financing of green transition in India.
Fifth, the education-employment gap must be bridged. And finally, focused building of state capacity and capability is required for sustaining and accelerating India’s progress, the economic survey adds.