India maintains macroeconomic stability despite global uncertainties: Sanjeev Sanyal
Member of the Economic Advisory Council to the Prime Minister, Sanjeev Sanyal, stated that India has maintained macroeconomic stability and managed to sustain growth of 7-7.5% despite global uncertainties. He pointed that sequential growth with stability is key to achieving the goal of a ‘Vikshit Bharat’. He said India's macroeconomic parameters remained robust with lower inflation, fiscal balance and a relatively contained debt-to-GDP ratio. He added that the government adopted a conservative fiscal approach even at the peak of the pandemic, which has helped preserve stability.
He underlined that though demand management is important for stability, it is not a source of long-term growth. He noted that the growth is generated by removing systemic inefficiencies. He cited reforms such as the Insolvency and Bankruptcy Code (IBC), which has helped clean up bad assets in the financial system, as well as improvements in airport infrastructure, as examples of incremental efficiency gains that cumulatively strengthen the economy.
He highlighted the regional economic disparities in the country and noted that the eastern states are lagging behind their western counterparts. He pointed that rapid economic expansion is typically driven by strong urban concentration. He said that there are growth centres in south like Bengaluru, Hyderabad and Chennai; in the west there are Mumbai, Pune and Ahmedabad; and in the north there is Delhi-NCR. In contrast, Kolkata is the single largest economic hub in eastern India while cities like Bhubaneswar and Ranchi are a fraction of its scale. He added that Kolkata has underperformed relative to its potential.
