India needs a 'second generation of reforms to meet Viksit Bharat targets: Montek Singh Ahluwalia
India needs a 'second generation of reforms,' and without which the country will not be able to reach the target of 'Viksit Bharat', stated Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission.
ANI
Jan 03, 2025 11:55 IST
New Delhi [India], January 3 (ANI): India needs a 'second generation of reforms,' and without which we won't be able to reach the target of Viksit Bharat, stated Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission.
Expressing the need to have a clear policy roadmap, Montek Singh stated that the country is passing through a crucial phase where the economy has become much more complex and needs proper planning of economic development.
Speaking exclusively with the ANI, Singh stated, "There are several things that need to be done in India. I would call all of these what I would call the second-generation reforms; you know, 1991 was a huge change. And it had a terrific impact. Dr Manmohan Singh, who is no longer with us, was the principal architect of it.”
He added “I think we're now at a stage where the economy has become much more complex, and you need a new set of reforms to deal with the more complex challenges that we face."
"I think somebody should outline them, and unless we get this done, I don't think we will reach Viksit Bharat," he stated.
Ahluwalia said at the moment Indian economy is growing at around 6.5 per cent and it will continue to grow at that rate. Many international agencies have also predicted a growth rate of 6 to 6.5 per cent for India. But it is not enough to meet the targets of Viksit Bharat.
He said “To achieve that there's general agreement that the growth rate has to be between eight and ten percent. I mean people vary but certainly eight percent at least probably more and I don't think our growth at the moment is.”
Ahluwalia, however said that governments alone cannot do everything, we need to encourage private investments to achieve these targets. But somehow Private investments have not been doing well despite efforts of the government.
“If we want a higher growth rate it is not going to be achieved through public investments. We need public investments in things like public infrastructure which is happening but if it is not accompanied by an expansion of private investment you will not get the product equity benefit that you need.”
Montek further said that one of the reason of not getting private investment may be that India is going through a “K” shaped recovery growth, “the upper part of the economy is doing well and the lower part of the economy is not doing well” …. “Recovery from the pandemic is good but it is unequal recovery” he added.
To correct this we need to work on employment generation where we have not performed well. We also need to work on labour-intensive exports, it will not only generate employment but will also be able to get the benefit of China plus one policy. Countries like Vietnam and Bangladesh is getting thE benefit which India should have achieved. (ANI)
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