India must grow at 8% to bring transformational changes for people: Summers

Summers clarified that 8% growth was not his forecast on the basis of current policy, but added, "given India's potential, even in a more challenging world economy..."

India has the potential and should aim to grow at 8 per cent annually to bring about transformative changes in the lives of millions of people by around 2050, said noted economist and former US Treasury Secretary Larry Summers here on Saturday.

India's GDP growth in 2022-23 was 7.2 per cent as against 9.1 per cent in 2021-22. According to the Reserve Bank of India's projections, India's GDP will likely grow 6.5 per cent in the current fiscal year.

Summers clarified that 8 per cent growth was not his forecast on the basis of current policy, but added, "given India's potential, even in a more challenging world economy, I believe that it is an imaginable goal.

"...an eightfold expansion in the economy is transformative in the lives of hundreds of millions of people. I think it is something to target as India defines its greatness in this next century."

In his lecture on 'The World is on Fire', organised by the CII in partnership with Department of Economic Affairs (DEA), the eminent economist also dwelt extensively on climate change and the role of multilateral development banks.

He said the multilateral development banks are immensely important as international institutions.

On the multilateral development bank's (MDB) agenda, DEA Secretary Ajay Seth said the G20 New Delhi Leaders Declaration gave a strong call for bigger, better and more effective MDBs with a stronger financing capacity as well as enhanced representation of the global south.

Chief Economic Advisor V Anantha Nageswaran was also present on the occasion.

Director General at Confederation of Indian Industry (CII) Chandrajit Banerjee said the leadership on the task force for strengthening and reforming MDBs was a crucial part of the work done under India's G20 presidency, and the recommendations of the task force even found place in the G20 communique.