Indian economy poised for 8% growth driven by reforms, says PMO official

File photo: Shaktikanta Das

NEW DELHI: The Indian economy is within striking distance of 8% growth, on the back of GST and banking reforms, flexible inflation targeting, digital payments and fiscal prudence, a top PMO official said Sunday. "Many of the reforms undertaken over the past decade were not designed as one-off measures, but as strategic buffers to enable the economy to absorb disruptions and recover rapidly," principal secretary to PM Shaktikanta Das said at the Kautilya Economic Conclave. The Indian economy expanded 7.8% in the June quarter after a 7.9% growth last financial year and the former RBI governor attributed it to the strong domestic demand and investment. "India's resilience is not accidental. It is the outcome of broad and mutually reinforcing reforms," he said. The former economic affairs secretary said India's financial sector and prudent management of the external sector had also emerged as strong pillars of economic growth. External sector indicators have remained broadly resilient, supported by export diversification, free trade agreements, a sustained surplus in services trade and steady inward remittances, he said. Listing out a host of reforms undertaken by govt, Das said: "The journey ahead is focused on capitalising on the emerging opportunities." Going forward, he said, the pace of activity will accelerate in five years, including AI, which can enhance productivity, improve public service delivery, accelerate scientific discovery, strengthen healthcare outcomes, and transform education. He also called for deepening of the corporate bond market, pension and insurance funds, municipal finance and innovative infrastructure financing.

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