The economy is in good shape and high-frequency gauges suggest the momentum attained in the three months through March is continuing through this quarter, chief economic advisor V Anantha Nageswaran said on Saturday.
He stressed that governments, mainly at the state levels, need to undertake massive deregulation, especially for micro, small and medium enterprises (MSMEs), to make it easier for them to do business and raise productivity.
"Governments should make it a little less burdensome and a little less onerous, as these raise the cost of doing business for MSMEs," Nageswaran said, addressing a conference organised by the Isaac Centre for Public Policy of Ashoka University in the capital.
The latest Economic Survey projected 6.3-6.8% economic growth for this financial year, compared with an estimated 6.5% in 2024-25.
Nageswaran said policymakers have to make a trade-off. "Do we prioritise productivity with compliance being an adjunct or do we make compliance as a primary goal and economic activity as a side effect?" he asked.
The private sector, too, has to play its part in ensuring that it plays by the rules, he said. Nageswaran highlighted the continued need for India to maintain its macroeconomic stability while pursuing innovation-led, inclusive growth strategies. He pitched for targeted investments in human capital, technology and infrastructure, on top of persistent structural reforms.
Private investments, energy transition, employment, artificial intelligence, share of income accruing to capital and labour owners, education and skilling, manufacturing and food security are priorities for policymakers, he said.
"It's important to be pragmatic rather than religious about energy transition," the CEA said, endorsing the need for undertaking energy transition without jeopardising economic growth or driving up costs for consumers to unreasonable levels.
As for deregulation, the latest Economic Survey asked governments to get out of the way and allow enterprises to focus on their core mission.
Endorsing a philosophical approach to governance, the survey also suggested a change in the operating principle of regulations from "guilty until proven innocent" to "innocent until proven guilty".
He stressed that governments, mainly at the state levels, need to undertake massive deregulation, especially for micro, small and medium enterprises (MSMEs), to make it easier for them to do business and raise productivity.
"Governments should make it a little less burdensome and a little less onerous, as these raise the cost of doing business for MSMEs," Nageswaran said, addressing a conference organised by the Isaac Centre for Public Policy of Ashoka University in the capital.
The latest Economic Survey projected 6.3-6.8% economic growth for this financial year, compared with an estimated 6.5% in 2024-25.
Nageswaran said policymakers have to make a trade-off. "Do we prioritise productivity with compliance being an adjunct or do we make compliance as a primary goal and economic activity as a side effect?" he asked.
The private sector, too, has to play its part in ensuring that it plays by the rules, he said. Nageswaran highlighted the continued need for India to maintain its macroeconomic stability while pursuing innovation-led, inclusive growth strategies. He pitched for targeted investments in human capital, technology and infrastructure, on top of persistent structural reforms.
Private investments, energy transition, employment, artificial intelligence, share of income accruing to capital and labour owners, education and skilling, manufacturing and food security are priorities for policymakers, he said.
"It's important to be pragmatic rather than religious about energy transition," the CEA said, endorsing the need for undertaking energy transition without jeopardising economic growth or driving up costs for consumers to unreasonable levels.
As for deregulation, the latest Economic Survey asked governments to get out of the way and allow enterprises to focus on their core mission.
Endorsing a philosophical approach to governance, the survey also suggested a change in the operating principle of regulations from "guilty until proven innocent" to "innocent until proven guilty".
You may also like
2024 Sunday market grenade attack: NIA files chargesheet against trio with ISIS-ISJK links
Ladakh is safe for travel, says Hill Council following 'unsafe' rumours
'We must stand as one': A plea for peace after the Pahalgam attack
Newark airport faces disruption after United Airlines cuts 35 daily flights
Why you keep rewatching 'Friends', and what It really says about your mental health?
