Pvt sector, education reforms critical in journey to developed nation'

Economists on Thursday expressed the view that India needed to do reforms in the judiciary, labour, and regulations to induce the private sector to step up investment.

- SHIKHA CHATURVEDI

Besides, the education sector, particularly at primary level, requires overhauling to realise the dream of making India a developed nation by 2047, they said at a panel discussion on India's economic reset amid a new world order.

Laveesh Bhandari, president at the Centre for Social and Economic Progress (CSEP), said he was not bothered about economic growth going up or coming down a bit but about medium-to-long-term growth.

The gross domestic product numbers for the quarter are scheduled to come on Friday.

"The most important thing is that you have to be internally strong," Bhandari said, emphasising the need for addressing judicial delays, which hamper contractual agreements.

Crisil Chief Economist D K Joshi estimated the annual average economic growth rate at 6.7 per cent till 2030-31 but he was of the view that the growth rate could be higher if the private sector was not averse to investment.

"The only part which is lagging behind and which, in a way, has the strongest capability to spend is the corporate sector. The financial flexibility of the corporate sector is today the highest in the past 10 years. Yet they are not investing," he said.

He laid emphasis on reforms to bring these players back to spur the economy.

Joshi also talked about corporations' fears about Chinese goods flooding India.

"If China has excess capacity, it's going to suffer deflation and that is going to flood the markets in Asia, including India. For a company that uses steel as a product, it's good news, but for a company that manufactures steel, it may not be good news," he said.