Business Ideas
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'The commitment and direction of reform are important'
says. My own view is it’s very likely to be above 7 per cent but whether to project it at 7.5 or some different number, I would leave that open at the moment. In the Commission, we have been working towards defining a policy scenario in which we can do 8 per cent or a little bit more next year and get to 9 per cent some time during the last year of the Plan, which is 2011-2012. It’s worth aiming at and not impossible. India getting into a 9-plus per cent trajectory and remaining there for a couple of decades is entirely possible but it requires a lot of hard work. Possible with a bit of determined effort. How seriously do you take Paul Krugman’s fears that the recovery in America might just be a blip? He is looking at relatively a short term. I am not making the assumption that the world will get back to what was earlier called normal. So, the real issue is, the industrialised countries are going to grow more slowly; can we, nevertheless, get back to 9 per cent? I think the answer is, Yes. On the supply side, we can actually do 9 per cent. We know the policies that we have to put in place, mainly related to infrastructure, and we just have to be determined and get it done. If you are okay on the supply side, will we be let down on the demand side? In our case, exports are not such a huge part of GDP. Yes, we will lose on exports and we need to offset that through investment and that investment should be infrastructure investment. There are a lot of implementation issues, process issues, conveying investor confidence issues but a doable job.Pages: 1 [2]