Aim for 10% GDP growth over a decade, says Chief Statistician

T C A Anant said aim for a double digit GDP growth needs to become a habit with the policymakers in the country

India needs to aim for a 10 per cent gross domestic product (GDP) growth rate and sustain it over a decade if the country wants considerable development and emerge as an economic power, the country's chief statistician T C A Anant said.

According to Anant, the aim for a double digit GDP growth needs to become a habit with the policymakers in the country which they need to endure over a period of time.

Citing the feasibility of a target when India's GDP fell to a five-quarter low of 7.1 per cent in the quarter ended June, Anant referred to China stating, "They were able to maintain it for over 20 years at a stretch which boosted economic activity in that country."

However, even a growth rate of 10 per cent continuing for a decade at a stretch may not help India overtake China to emerge as the economic leader in Asia.

"We are in the lower end and if we need to double our growth in the next 7-8 years," he said.

Referring to the ideal growth, Anant said that economic policies in the country will have to match the investments temperament, especially infrastructure investments.

India's gross fixed capital formation, a proxy for investment growth, contracted 3.1 per cent year-on-year in April-June and 1.9 per cent in January-March.

It was only in the financial year 1988-89 that independent India's GDP had hit a double-digit mark at 10.2 per cent.

He is of the opinion that the rollout of goods and services tax will help in collecting more accurate data to calculate the gross value addition — a balancing item of the national accounts' production account.

He reasoned that since there will be a single point of tax collection for different economic activities of a company, a more accurate and clearer picture about sectoral contributions can be obtained.

"We can better captivate the entire value chain. Once it is rolled out, data collection will improve," he added.