Not time to press growth accelerator now: Sanyal

KOLKATA: This is not the time to press the accelerator for higher growth, rather the focus should be on building the supply side, said Sanjeev Sanyal, a member of the Economic Advisory Council (EAC) to the Prime Minister.

Sanyal also said that India would surpass Germany to become the fourth-biggest economy in the world in 18-24 months. The economy will grow 6.5-7% this year, Sanyal said. He was speaking at a Bharat Chamber of Commerce event here on Tuesday.
“Currently, there is macroeconomic stability in the country. The current account deficit (CAD) is within a reasonable range and foreign exchange reserves are at $600 billion,” he said. Sanyal pointed out that with weak export demand, there is no need to push domestic demand through stimulus as this might put stress on the external sector causing problems in the CAD.

The focus would have to be on keeping the supply strong as it had been during the Covid years, he said. “Past investments in infrastructure are benefiting us now. A growth of 6.5% given the world’s depressing scenario is not bad. There is no need to press the growth accelerator now. We can do that when there is a clear highway. Some bumps are still there,” Sanyal said.