Responding to former RBI Governor Raghuram Rajan’s comments on Indian GDP growth, KV Subramanian, Executive Director of the International Monetary Fund (IMF) and Former Chief Economic Advisor to the Government of India, expressed confidence in India’s remarkable economic resilience.
He highlighted the robust 7.7 per cent GDP growth in the first half of the year, projecting a 7 per cent growth for the entire financial year.
Subramanian said, “The fact that the economy has grown at 7.2 per cent last year and at 7.7 per cent in the first half of this year is telling in itself. And if I look forward to a 7.7 per cent growth in the first half of the year, even with a 6.3 per cent average in the second half of the year, India will grow at 7 per cent this particular financial year. So I think it’s important to keep in mind that during the pandemic there were many commentators who were very negative”.
He further said, “There were people and if you go and check back their media statements, you will find that there were people who said that there are millions of Indians that are going to die on the streets. There are people who actually said that the GDP will decline by over 20 per cent for that financial year itself”.
He added, “Many people made such statements and I think none of that has come true. So in general, I think because of the sui generis policy that India implemented, India had the self-confidence and the courage of conviction to chart its own path rather than copy-pasting what was done, for instance, during the global financial crisis, where we copy-pasted what the advanced economies did.”
Subramanian emphasized the significant deviation from doomsday predictions during the pandemic, where critics anticipated severe consequences.
He praised India’s distinct policy approach, showcasing self-confidence and conviction to forge its path, contrary to the copy-pasting strategies observed during the global financial crisis.
The executive director commended India’s economic performance, challenging negative forecasts and applauding the country’s ability to navigate challenges successfully.
