Times Now Summit 2022: Open road in this economic machinery can generate 9% growth: Sanjeev Sanyal

New Delhi: Economist and member of the Economic Advisory Council to the PM (EAC-PM) Sanjeev Sanyal, while speaking at the Times Now Summit, said that the economic machinery that India has built currently is capable of generating 9% growth, maybe not immediately but eventually.

"The growth rate that we are generating despite the turbulent times and I would put my head out and say that if we get an open road, this economic machinery that we have built is capable of generating a 9% GDP growth rate, not just yet, because as I said, we need an open road but it is capable of much higher growth rate," Sanyal said in a fireside chat with MK Anand, MD & CEO, Times Network.

According to S&P World, India's real GDP is predicted to increase at a 6.3% annual rate between FY2021-30, which is faster than the global average. With this, India is anticipated to overtake Japan and Germany as the world's third -largest economy in nominal US dollar terms.

This will be accomplished by higher per capita income, increased domestic manufacturing, and strengthened trade linkages with global economies, according to the research.

He added that it won't be a great idea to push for further growth rate against India's current swelling GDP.

"It's not surprising given the COVID shock, geopolitical events in Eastern Europe, oil prices, and so on that the economy of the rest of the world is struggling, but it does mean that the rest of the world is slowing down and liquidity is being sucked out but in that the environment if we are growing at 7% then I would argue, (it is) not a great idea to try and push for even further growth. Because the difference between ours and the growth of the rest of the world will ultimately show up in the external accounts," Sanyal said.

"Given that constraint, macroeconomic constraint we need to watch I would argue that restrained macroeconomic approach that RBI has done is the correct approach. this is not the time to overstretch ourselves. let us be satisfied with it for now but the time will come when we will be able to hit the accelerator. I am assuring you that the Indian supply side is ready for the big time," he added.