Former chief economic advisor Arvind Virmani said that India’s economic growth seems to be back on a recovery path and the country will be on a firm 7.5% plus growth track this year.
Virmani included that the US-China tariff war provides an opportunity to increase India’s exports to the US.
He said that economic growth has been subjected to many ups and downs over the past seven years, butseems to be back on a recovery path.
“Domestically, the main risk to macro stability is politically driven government consumption spending at the cost of investment and fiscal prudence. If this temptation is resisted, the country will be back on a firm 7.5 per cent plus growth track this year (fiscal),” Virmanisaid.
He noted that the rise in oil prices due to geopolitical factors like sanctions on Iran by the US is, however a concern because the US-China tariff war will have some short-term disruptive effects on the global economy.
“The US-China tariff war, however, provides an opportunity to increase India’s exports to the USA and to attract, labour intensive elements of the global supply chain unsettled by higher ‘China risk’ to India,” he said.
Virmani also predicted that India will become a great economic power by 2035.
Source: The Economic Times