Letters: The real growth picture

Apropos the article “What is India’s real growth potential?” (May 23), Arvind Subramanian, while acknowledging that he and Dani Rodrik had grossly underestimated India’s growth potential in 2004, goes on to repeat the same mistake. Far from skilled labour being in short supply in India, its availability is increasing and skill levels are improving every day — a trend that will continue for many decades. Governance has always been very poor in post-Independence India, but it is now beginning to improve slowly. The fact that the poor are eating more presents an immense opportunity for Indian entrepreneurs to boost supply and rake in profits. This will lead to faster growth despite inflation. Subramanian acknowledges that India (unlike China) has not reversed the fundamental course of market-based reforms. The aftermath of India’s land, mining and spectrum scams and stricter environmental enforcement is a stronger foundation for faster and more sustainable development. India’s real growth potential is set to be nine per cent to 10 per cent a year from FY 2013-14, and this growth rate is likely to remain for around 20 years.

Alok Sarkar, Kolkata

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