India can sustain growth only if ease of doing business improves

“The question to look forward is how India can sustain the growth for decades. Biggest challenge is to sustain even 8 per cent growth with providing ease of doing business continuously, synergy between social and political institutions,” she said at the World Economic Forum’s India Economic Summit. “Inflection point will be if India can stay at 8 per cent for long period of time,” she added. 

The country faces a skills deficit and people aren’t equipped for the new jobs that Fourth Industrial Revolution will bring, the Economist, who is also the Financial Advisor to Kerala Govt, said. Union Commerce Minister Nirmala Sitharaman said an 8 per cent growth rate was achievable for India and sustainable over the long term with the combined efforts of the Centre and the states. 

“I think it (8 per cent growth) is achievable. Across states we find the urge to get out of the rigmarole. The kind of issues the government has brought forward, these have been very well received by states,” Sitharaman said at the Summit. “I can see 8 per cent growth argument going down well with every government in states and Centre. People have recognised the factors on which we have to work, so political parties cannot differ on them,” she added during a panel discussion on India’s economic growth. Private participation with government can expedite the growth process, she said. 

John Rice, Vice-Chairman, GE Hong Kong SAR, said to move towards growth, more emphasis should be given by India on promoting exports for the goods to compete on a global level. “We are a big proponent of Make in India. But more emphasis should also be on exports. True benchmark is that whatever you are building should be able to compete on a global level,” he said. The mission is sustainable inclusive growth. We need to create 1 million jobs a month and retain those jobs. Focus is on skill building converged with digital  efficacy, he further said.