Govt reforms to lay foundation of higher growth: CEA

Chief economic advisor (CEA) Krishnamurthy Subramanian believes that the recent reforms initiated by the government will lay the foundation of higher growth. Reforms on judicial side and overall government capacity to deliver public goods can each add 1-1.5 percentage points to GDP, he added. In addition, there is a need to improve the competitiveness of the manufacturing sector which, in turn, will help in job creation and promote inclusive growth. Hailing the government’s production linked incentive (PLI), the CEA stated that it incentivises growth. Also, recognition of the private sector’s role to provide economically optimal level of activities is also an important part of the growth vision, he added.