External factors responsible for slowdown in growth: CEA Anantha Nageswaran

Blaming external sector for the slowdown, Nageswaran said, “The golden era from 1980 onwards, which probably was until 2016 when you had era of globalisation where trade flow of as share of GDP went up, investment flows as percentage global GDP went up, poverty reduction happened, and there was free movement of goods and services and even people, but that is drawing to an end”.

He, however, hoped that there could be other forces coming into play which could provide a tailwind in the coming years.

“Right now, we are in a state of flux that is what we have to take into account in our planning and in our policy framework for growth, which will take care of India’s aspiration given this global environment,” he said.

The survey said India needs to grow at nearly 8 per cent over the next decade or two, and the investment rate must rise to 35 per cent of GDP from the current 31 per cent to meet the longer-term economic goal of a developed nation by 2047.

The IMF projects India to be a USD 5 trillion economy by FY28 and USD 6.3 trillion by FY30, with an annual nominal growth rate of 10.2 per cent in USD terms.

Calling for reinvigorating the internal engines of growth by enhancing economic freedom through deregulation, the report called for states to reduce the cost of compliance by liberalising standards and controls on businesses as well as cutting tariffs and feeds.

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