New Delhi: India needs to grow by at least 7-8% annually in its pursuit to become a developed country by 2047, chairperson of the Parliamentary Standing Committee on Finance Bhartruhari Mahtab said on Friday.
He stressed on the need to focus on increasing women’s participation in the workforce, particularly in urban areas, and strengthening the education system of the country. Mahtab’s remarks followed a briefing by chief economic advisor V. Anantha Nageswaran on the current macroeconomic situation.
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Mahtab told reporters that Nageswaran apprised the panel, which is a joint committee composed of 21 Lok Sabha members and 10 Rajya Sabha nominees, on the global economic headwinds and other challenges before India.
Mahtab said, quoting Nageswaran, that India’s economy is progressing steadily and that the current growth rate is “nothing less.”
“In comparison to other developing and developed countries, India is in a safe place,” said Mahtab.
“We are on course (to become a developed nation by 2047) but we would like to increase the pace of our economic growth to a minimum of 7-8% growth. That is our target,” Mahtab explained.
Mahtab also said that Nageswaran emphasised on reforms for accelerating growth.
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The recommendations of the Parliamentary Standing Committee on Finance influence government’s decision making, although they are not binding on the government.
The monthly economic review for April prepared by the finance ministry had said India has the potential to remain as one of the most promising destinations for investment, amid global uncertainty.
“Foreign direct investors are likely to respond positively to policies that strengthen the country’s medium-term growth prospects,” the review had said. Policies that enhance the skills and productivity of the country’s young workforce can significantly strengthen the virtuous cycle of investment and growth, the review had said.
On Friday, the RBI said India’s economy is expected to grow at 6.5% in the current financial year with risks evenly balanced. The central bank expressed optimism about farm output growth and rural demand getting further impetus by an above normal southwest monsoon rainfall. The central government’s estimate is of a 6.3-6.8% growth in the current year.
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The central bank pointed out that sustained buoyancy in services activity should nurture revival in urban consumption. Policy makers are betting on improved balance sheets of banks and corporations, government’s continued thrust on capital expenditure and improved capacity utilisation in factories for a further revival in investment activity.
The RBI will brief the house panel on 20 June on the central bank’s ‘evolving role in India’s dynamic economy,’ as per the committee’s schedule.