Former Prime Minister and architect of economic reforms Manmohan Singh today said sustaining 7-7.5 per cent GDP growth will require significant increase in investments, particularly in infrastructure, and revitalising external trade.
Economic policies have to be designed in a manner that the redistributive process does not fill up public financing and nor is the growth process hampered, he said at the annual session of PHD Chambers of Commerce.
“To achieve this objective, inclusive development needs to be combined with consolidation of public financing, financial stability, employment generation economic growth and protection of environment,” he said.
The Modi government, which succeeded Singh-led UPA regime in 2014, has talked about catapulting the nation to being the world’s fastest growing major economy.
“Although India is now growing at an annual rate of 7-7.5 per cent per annum the sustainability of growth process would require a significant increase in rate of investment particularly in new infrastructure sectors as well as revitalisation of our international trading sector, particularly exports,” he said.
India, he said, is moving from a phase of 1991 economic reforms to an era of sustainable development.
“The priority now must not only be to accelerate, but the multi-dimensional aspect of growth, equity, inclusion, employment generation and environmental sustainability,” he said.
Singh said it is important to recognise several challenges experienced in higher education, eradicating poverty and malnutrition.
“Economic growth and macro economic stability are necessary for reducing poverty,” he said, adding that the countries which have successfully reduced poverty are the ones which have combined rapid growth with equity in sustaining growth process.