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Investment is key driver for achieving target of 8 pc GDP: Subramanian

20190705

New Delhi For achieving the goal of 5 trillion dollars economy by 2024-25, India needs to focus on growing the GDP at the rate of 8 per cent and investment would be the key driver for this vicious cycle, Chief Economic Adviser K V Subramanian said on Thursday. Dr Subramanian said the year 2019-20 has delivered a huge political mandate for the government, which augurs well for the prospects of high economic growth. He said investment is the only thing which can raise other things such as productivity, export, employment among other things. “If we look at the China economy when it was a developing country, they had more focused towards investment. In fact their investment grew to around 50 per cent of the GDP which is the robust,” Dr Subramanian told a news conference held after tabling of the Economic Survey 2018-19. Union Finance and Corporate Affairs Minister Nirmala Sitharaman presented the Economic Survey 2018-19 in both the House of Parliament. This was Dr Subramanian’s first economic survey. He said the current rate of investment was around 29.3 per cent of the GDP though it should be raised to 30 per cent of the GDP for the target of 5 trillion dollar economy. For raising investment, the CEA said, “Indian MSMEs need to be freed from the shackles that convert them into dwarfs. They should be seen as a source of innovation, growth and job creation.’’ “One of the biggest hurdles to achieve the 5 trillion dollars economy is poor enforcement of contracts and dispute resolution. Steps to speed up legal process should be top priority. The survey shows that required efficiency gains and appointments are large but achievable.”

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