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Export-oriented policies needed for Reform 2.0: Principal Economic Advisor Sanjeev Sanyal.


Date: 25-05-2019
Subject: Export-oriented policies needed for Reform 2.0: Principal Economic Advisor Sanjeev Sanyal
The Reform Agenda 2.0 should focus on turning India into an export and private sector driven high growth economy says India’s Principal Economic Advisor Sanjeev Sanyal to ET Now, a day after the Modi government won a massive mandate in the 2019 general elections, becoming the third prime minister after Nehru and Indira Gandhi to return to power the second time with full majority. 

“Our infrastructure is not the binding constraint anymore. We have done major framework reforms like GST and IBC, so the last five years were for creating framework for delivery, infrastructure, governance. The next five years should be for growth driven by exports and private investments. Space has opened up going for growth and I am not in favour artificially inflating consumption”, said Sanyal, one of North Block’s top policymakers 

The three key engines of the economy are witnessing a slowdown- private investment, consumption and exports and Finance Ministry is tasked with drawing a blueprint to pump prime the economy at a time when trade war has become a reality. 

Sanyal said that there is demand slowdown but fiscal and monetary tools will be used to boost growth, while adding that tight real interest rates and liquidity issues had to be addressed soon. 

Sanyal also pointed that trade war should be used as an opportunity to boost India’s competitiveness. 

“There is disruption in global trade, but there’s a lot of opportunity. Our share is very small so we can easily expand our share. Liquification of global trade networks is a good thing. It allows us to insert ourselves in global supply chains both in services and goods. We shouldn’t think that our internal market is end all and be all and we can use this space to leverage on building scale and size”, he added 

Sanyal also added that Enforcement of contract is the single biggest in India’s Ease of doing business. Indian ranked 77th in World Bank Ease of Doing Business list in 2018. 

Source: economictimes.indiatimes.com

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