Increasing savings and ensuring growth of the manufacturing sector along with high exports is the key to achieving a growth rate of eight per cent per annum, said economist and former deputy governor of Reserve Bank of India Dr Rakesh Mohan.
He was in Pune to deliver a lecture on ‘Moving India to a new growth trajectory’. The event was organised by Pune International Centre recently.
Mohan said, “There is a need to bring the focus back on high growth. It must be understood that effective distribution is necessary but we can’t distribute unless we grow. In order to achieve this, it will be crucial to encourage domestic savings, step up tax collection and invest on building the necessary infrastructure.”
Highlighting the issue of stagnation in the manufacturing industry with zero growth seen in exports, he said, “All countries that sustained high growth rates did so on the back of manufacturing. So, measures must be taken to push the manufacturing sector with increased investment in research and development. If we are aiming to grow at eight per cent per year, the manufacturing sector must grow at 10 per cent and manufacturing exports at 12 per cent annually.”
Former non-executive director of Tata Sons Limited, Ishaat Hussain, who was also present at the event, said the government should encourage manufacturing sector and at the same time bring efficiency in public services. He said there is a need to take a goal-driven, managerial approach in the delivery of public services.