“A Vibrant Risk-taking Spirit Is The True Engine Of Growth, Around Which Everything Else Aligns”

In an exclusive conversation with BW Businessworld's Arjun Yadav, SANJEEV SANYAL, Member of the Prime Minister's Economic Advisory Council, reflects on India's economic resilience, regional imbalances, demographic shifts, and why entrepreneurship and risk-taking will shape Viksit Bharat 2047

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How do you view India's economic journey over the past five years?

The past five years have been challenging, with the first two dominated by COVID-19 and global uncertainty. India emerged relatively well compared to most countries, aided by a restrained approach that avoided the large-scale monetary and fiscal expansion many experts advised. This preserved macroeconomic stability and kept the banking system sound. Post-crisis, growth rebounded sharply before moderating to around 6.5 per cent last year, still strong compared to much of the world.

Over the last year we were cautious amid tariff wars, the conflicts in Ukraine and the Middle East, and our own Operation Sindoor. But with new trade agreements, clearer global trends, and rising investment momentum from private and multinational players, I think the time has come to press the accelerator going forward.

Growth is uneven across states since 1991. What worked for leader states, and how can others catch up?

Since the 1991 reforms, India has become the world’s fourth-largest economy, recently overtaking Japan, and is poised to surpass Germany within 24 months. Per capita incomes are rising, and absolute poverty has fallen sharply, confirmed by both domestic data and the World Bank. While debates on inequality persist, consumption-based Gini data suggest India is not among the most unequal nations, and welfare schemes like free food and Ayushman Bharat have reduced disparities.