KV Subramanian, managing director of the International Monetary Fund (IMF) and former chief economic advisor to the Indian government, praised the country’s economic performance and expressed optimism for the economy.
Responding to former RBI governor
Raghuram Rajan’s comments on India’s GDP growth, KV Subramanian, managing director of the International Monetary Fund (IMF) and former chief economic advisor to the Indian government, expressed his optimistic.
Speaking to ANI, he highlighted the strong growth of the Indian economy, with growth of 7.2% last year and 7.7% in the first half of this year. Subramanian expects 7% growth in the current financial year.
“The fact that the economy grew 7.2% last year and 7.7% in the first half of this year speaks for itself. And if I predict growth of 7.7% in the first half, even with an average growth of 6.3% in the second half. half, India will grow at 7% in this particular fiscal year,” he said.
“I think it’s important to remember that during the pandemic, a lot of commentators were very negative. There have been people and if you check their statements in the media, you will see that there are people who have said there are millions of people. Indians are dying in the streets. There are those who say that GDP will decline by more than 20% this financial year. Many people “Many people have made such statements and I don’t think this has happened.” right,” he added, referring to cautious comments during the COVID-19 pandemic.
“In general, I think because of the suigeneris policy implemented by India, India has had the confidence and courage to chart its own course instead of copying and pasting what has already been done, for example. such as during the global financial crisis.” , where we copy and paste what advanced economies are doing…” he added.
GST revenue has a positive trend
Subramanian also commented on GST revenue collections by November 2023, saying that collection trends indicate the possibility of ₹ 2 lakh crore per month in 1.5-2 years. He attributed the success in GST collection to effective policy implementation, reflecting India’s commitment to sound fiscal management.
“I think from the indications so far, in about 1.5 to 2 years, we can expect to touch 2 lakh rupees in a month. I think good GST collection is part of the overall phenomenon about the good policy that has been implemented…So, overall, I think the good results on the GST side are evidence of good tax policy…”, he stated.
Satisfaction with India’s GDP growth
Expressing satisfaction over India’s GDP trajectory, Subramanian recorded a growth of 7.6% in the second quarter, following previous growth of 7.2% in FY23 and 7.8% in first quarter of the current fiscal year. He also hailed the average growth rate of 7.7% in the first half of the year as exceptional in a challenging global economic environment, and praised India’s economic performance as remarkable in the face of the current recession.
Subramanian praised the resilience and dynamism of the Indian economy, highlighting its remarkable growth despite the complexities of the global economy. He emphasized India’s ability to chart its own course, comparing it to the approach taken during the global financial crisis, where India implemented unconventional policies instead of imitating imitate advanced economies.
What did Rajan say?
Former Reserve Bank of India Governor Raghuram Rajan said last month that the Indian economy is showing signs of steady growth, but needs to grow at a rate above 8% to create enough jobs for the most populous country. world. “We should reach 8-8.5%, taking into account people’s needs and employment needs. Economic growth of 6 to 6.5% is strong compared to other countries, but compared to our job needs, I think it is still a bit slow because we have a lot of young people who need jobs.” he noted.
Rajan said India also needs to train its workforce to compete with other efficient manufacturing countries, including China and Vietnam. “India is trying to move up the value chain and there are signs that this is happening. But there is a long way to go before we actually produce complete mobile phones in India,” he added, referring to iPhone production in the country.
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