Updated: May 29, 2015 01:53 IST | Special Correspondent
It is necessary and feasible for India to reach 10 per cent GDP growth for the next 10 years, according to new book Resurgent India. authored by Ramgopal Agarwala, Rajiv Kumar and Rajesh Shah.
Mr. Ramgopal Agarwala, a former executive of World Bank said that India has a wrong concept of fiscal prudence.
“We have stuck with this idea of fiscal deficit which is basically a flawed concept. If fiscal deficit is for investment and if prudent finance can be mobilised domestically and externally fiscal deficit is not a problem,” he added.
Mr. Agarwala also pointed out that high interest rate policy is counter productive and the rupee is over valued, hurting economic prospects.
also argues that the greater push to services would be important to hit the 10 per cent GDP mark.
“Construction sector will grow rapidly, communications sector, business services, education and health this has potential to grow at 14 per cent for next 10 years. This is slightly different from Make in India programme, which focuses on manufacturing. We do talk about doubling of manufacturing and agriculture growth. But for 10 per cent GDP we need great push on services sector,” said Mr. Agarwala.
The book also said an investment to the tune of 40 per cent of GDP would be required, which should not only come from private savings but also from public savings which is now below potential.
The book was launched on Thursday by Union Minister Nitin Gadkari.