How to make India great again?

India has immense growth potential. Judicious application of coordinated fiscal monetary tools, with a fair level of investment, may do wonders

- SURJITH KARTHIKEYAN

INDIA HAS BEEN witnessing arguably the best growth globally over several years. At times there was turbulence, especially during the Covid pandemic coupled with a global financial slump that caused ripples and temporary disturbances across economies. In the current context, the question is how to use macro-economic tools judiciously to unlock India's immense growth potential.

A certain rate of growth ensures smooth and uninterrupted progress for an economy. For India, it could be pegged at 7 to 8%, taking cues from experiences over the last 10 years and nullifying outliers such as Covid-19. Investment had a key role in the success story of economic growth, with its dual effects of (a) creating demand through income generation, and (b) productive capacity of the economy or the supply effect of investment. A balance of these dual effects could also be maintained over those years due to which there was no idle or excess capacity, neither a high inflation nor deflation scenarios due to supply or demand imbalances.