Driving investment should be the main focus for the country, on track to achieve 8 per cent growth and expand the size of its economy to $5 trillion, Chief Economic Adviser Krishnamurthy Subramanian told NDTV in an exclusive interview on Thursday. Speaking hours after releasing the Economic Survey, a comprehensive report of the economy tabled in parliament a day before the Union Budget, Dr Subramanian, said that Prime Minister Narendra Modi's government had returned to power with an "unprecedented mandate" that presented a great opportunity for reform.
Here are the Highlights of the interview:
- We need to grow at 8 per cent - that is the Prime Minister's vision. We need to focus on a strategic blueprint - of PM's vision on $5 trillion economy.
- The Economic Survey is a strategic blueprint to achieve $5 trillion economy.
- The government has got an unprecedented mandate and we have to grab that opportunity.
- Gathered evidence from China, other East Asian economies. Countries we looked into pursued investment driven growth.
- We recognise there's been some slowdown.
- Growth slowdown now is because of growth slowdown before 2014. Quality of investment was poor which led to a slowdown.
- Once investment happens, all will fall into place.
- Do not want focus on quantity of investment over quality.
- Tried to focus on what we need to do, to achieve $5 trillion economy (In the Economic Survey). In particular, trying to signal change in the way we think of development.
- We view jobs and demand in silos while they're complimentary.
- Globally liquidity conditions are extremely benign.
- Enactment of bankruptcy code is important. Three lakh crore have been cleaned up through Insolvency and Banking Code.
- Aggregate savings have been falling but financial savings have not decreased.
- We have to tap into foreign savings.
- Crucial not to crowd out private investment.
- Need to change mindset on small firms. Let small firms grow & compete on their own.
- NREGA, Ayushman Bharat, PM KISAN are important considerations. Key things we need to keep in mind is contributing from non-tax revenue. Lot of PSUs sit on land banks. Bring those together and monetise it. Whether we get from tax or non-tax sources, doesn't matter. Look at our fiscal deficit.
- Absolutely serious about it (on incentives for people to pay high taxes, like VIP treatment and naming airports after taxpayers). Taxes you pay contribute to economy. So you should be recognised, why not recognise those? What's wrong about it?