Recent reforms will lay foundation of higher growth: CEA Subramanian

Chief Economic Advisor (CEA) Krishnamurthy Subramanian on Thursday said the recent reforms initiated by the government will lay the foundation of higher growth.

Speaking at the CII Global Economic Policy Summit 2021, he said the production-linked incentive (PLI) scheme being implemented by the government is directed towards growth.

He added that there is an impelling need to improve the competitiveness of the manufacturing sector which, in turn, will help in job creation and promote inclusive growth.

Subramanian also stressed that the economies of scale is one of the most important aspects to reduce average costs and thereby becoming competitive, not only in the domestic market but also in international markets.

Rakesh Mohan, member (part-time), Economic Advisory Council to the Prime Minister of India, while articulating that the Indian economy needs a reboot stated that there is a need for a third-generation reforms aimed at leapfrogging its growth trajectory to the next level of around 8-9 per cent, which will ensure doubling of per-capita income in the coming decades.

There is also a need for a regulatory standards-setting authority, which is technologically competent to deliver on the third generation reforms, he added.

Vijay L Kelkar, chairman of India Development Foundation and former finance secretary to Government of India, spoke on the GST reform.