Mayaram optimistic about 7% plus growth in next 2-3 years

India can get back to over 7 per cent growth in the next two-three years, Finance Secretary Arvind Mayaram said.

“Business confidence is back and even though still tentative, growth in the industrial sector, especially manufacturing, is showing an up-tick,” he said during the G20 (Group of 20 countries) Deputies Meeting in Cairns, Australia, on Thursday.

Mayaram expressed confidence that by pursuing growth-inducing policies, the Government would contribute to India fully going back to 7 per cent-plus growth in two-three years. “To that extent, India stands committed to the incremental 2 per cent growth in global GDP,” he said. His confidence comes at a time when the economy grew at 5.7 per cent during the April-June quarter of this fiscal against 4.7 per cent in the same period last year.

Mayaram said although the policies pursued by emerging market economies to bring growth back have been effective, it would be imperative such economies, including India, to continue with structural reforms. However, the uncertainty and volatility in the external environment was worrisome and needed the attention of the G20, he added.

“As the US Fed withdraws from unconventional monetary policy, there will be an overhang on asset prices in the emerging markets and, therefore, volatility in the currency markets,” he said.

The Finance Secretary said the recent decision to exit from the quantitative easing (QE) programme had an impact on the currency markets of many emerging market economies.

“The strength of G20 lies in taking international collaborative actions and not limiting these to individual country growth strategies,” he suggested.

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