Underlining the need for structural reforms in the economy, minister of state for finance Jayant Sinha on Wednesday said these would help achieve a sustainable and non-inflationary growth rate of 7-8 per cent in the long term, helping India become a $5 trillion economy over the next decade.
“Structural reforms will lead the economy to a high growth trajectory with non-inflationary impact,” Sinha said at the Delhi Economics Conclave 2014, adding that the government is planning to methodically and systematically pursue reforms. “We recognise this is not a T-20 game. As long as we keep hitting the ball and methodically and systematically pursue reforms…there will be a dramatic change in the economy,” he said.
Sinha added that India’s economy, which is currently valued at $ 2 trillion can move to a $4 trillion economy over the next 10 to 12 years if there is sustainable 7-8 per cent growth. “If rupee strengthens we may end up getting closer to $ 5 trillion economy.”
Listing the priorities before the government, he said, there is a need to pursue macroeconomic stability, build world class infrastructure, unlock entrepreneurial energy and put in place a social security system.
However, Tharman Shanmugaratnam, deputy Prime Minister of Singapore, said that India while working on transforming itself into a global manufacturing hub, must decide whether its manufacturing would be for the domestic market or global markets.