India Must Grow at 8% to Be $5 Trillion Dollar Economy: Krishnamurthy V Subramanian
New Delhi: Chief Economic Advisor Krishnamurthy V Subramanian on Thursday asserted that the Indian economy must grow at a 8 per cent rate over the next five years to achieve Prime Minister Narendra Modi's vision of the country becoming a $5 trillion dollar economy, for which the Economic Survey 2018-19 stresses on investment as the key driver.
While investment remained the only tool to achieve this ambitious target, the Krishnamurthy V Subramanian provided two options for government and the private sector as to where it can come from.
“We focus on trying to lay out the model so the economy growth path on 8 per cent is sustained,” he said, adding “the opportunity for Indian companies is that internationally the cost of capital is slightly low, liquidity is very high there”.
“So there is opportunity for private firms and sovereignty (government) as well to think about raising money abroad. We also can allow foreign investment to come in,” Subramamanian said at the media briefing after the survey was tabled in Parliament.
“... to achieve the 8 per cent growth, investment as a percentage of GDP has to be in excess of 30 per cent... in China, it has reached over 50 per cent. We need to start investing close to 35 per cent. The current rate is 29.6 per cent, he said to a query on what the required investment rate is.” (IANS)