It’s more important to focus on India’s economy achieving the $5 trillion target rather than trying to figure which sectors would lead the growth, chief economic advisor (CEA) Krishnamurthy Surbramanian said here on Friday. The government seems to be betting on infrastructure and start-ups for growth and triggering a revival of the economy.
“What we have to care about is the economy getting to $5 trillion, irrespective of whichever sector it comes from,” Subramanian said while interacting with the media on the sidelines of his lecture at the Ahmedabad Management Association. With regard to formalisation of the economy, the CEA said that no policymaker has a crystal ball to predict the future but added that emphasis on formalization of the economy will continue, as has been the case in the last five years.
When asked which sectors – primary, secondary or tertiary – the government is betting on for the growth of the economy, Subramanian said what the country needs is investment, which results in higher productivity, exports, job creation and demand generation. “Growth is dictated by the demand-supply equation. Earlier, during planned economy, this was done in a regimented way. But in a market economy, this is no longer the case. A top-down approach sitting in Delhi does not work. The government has to be more calibrated, especially when there are uncertainties at a global level,” he said. He is betting on sectors such as infrastructure and start-ups for growth.
He termed the slowdown in sectors such as automobile, textiles, chemicals and gems and jewelry as cyclical and something inherent for a market economy and ruled out any intervention by the government except under extraordinary circumstances.