If the Indian economy has to get back to a high growth trajectory and if demographic dividend must not turn into severe liability, we must continue to pursue 'sensible economic policies", according to former chief economic advisor and honorary professor at ICRIER, Shankar Achraya.
In the near term, it is very important to reduce fiscal deficit, resurrect the reform thrust and restore investor confidence, Achraya said delivering a lecture on ‘India after the Global Crisis’ at the ICFAI University campus here.
In this regard, he welcomed the reduction in diesel subsidy, the cap on subsidised cylinders, allowing of foreign direct investment into the retail sector and other announcements made by the union government recently.
Acharya called for a complete revamp of energy sector policies, reform of land, water and natural resources allocation system, ushering in of significant labour reforms and policies to meet the challenges of urbanisation.
In this context, he warned that the worsening macroeconomic indicators threatened to build into a full-blown crisis by the summer of this year. Slow growth, high inflation, financial sector stresses, infrastructural bottlenecks and bleak outlook on medium-term employment are all worrying signs of impending crisis, he said.