NEW DELHI: More
reforms
could push the country’s potential
growth rate
to 8% and India is poised to emerge as a major economic power in few years, a top economist said Saturday, asserting that critical
policy changes
need to be continued to achieve economic success.
“The good news about India is that potential growth under the current policies is at least 6%, may be 7%, and if additional economic reform can occur, that can lead potential growth to be 8%,” Nouriel Roubini, professor emeritus at the Stern School of Business, New York University told ET World Leaders Forum.
He said for the last few decades China was growing much faster than India and in the next few decades it is going to be just the opposite.
“Of course, India has to catch up starting from a much lower level of per capita income. But for that economic success to continue the kind of
economic reforms
that have already been done needs to be continued and expanded,” said Roubini, referred to as “Dr Doom” and is credited for predicting the 2008 financial crisis.
He detailed a number of reforms that need to be deepened, including those related to land and labour markets, bankruptcy, further financial inclusion, more investment in skills and human capital, reform of the bureaucracy and provision of public services.
“So I am quite optimistic India is going to become a major economic power and in next few years is already going to be the third largest economy and with economic power it will bring more political and geopolitical power and it is going to be one of the greater superpowers in the next few decades as well,” added Roubini.
