India’s Gross Domestic Product (GDP) which is hovering around 5 percent is expected to inch up to 7 percent in the next financial year, according to the Chairman of the Economic Advisory Council to the Prime Minister Bibek Debroy.
“I see India breaking out of 6 percent GDP and inching upwards gradually, but not overnight, to 7 percent or thereabouts,” Debroy said.
He was addressing the Cafemutual Confluence 2019. Debroy was speaking on the topic ‘Modi 2.0 Economic priorities and Challenges.’
Debroy expects GDP numbers at the end of the current fiscal year (FY20) to be around 6 percent.
He also said one should not get swayed by the quarter-on-quarter GDP numbers and dismissed the clamour around 5 percent growth registered in the first quarter of the current financial year (FY20).
Debroy also pointed out that second-quarter growth will not be better than the first quarter.
He explained that if India has to grow at 8 percent then states will have to do much better.
“There have been states on the eastern side which are growing at about 6 percent. If these states do not ramp up their growth rates obviously India will not be able to grow,” Debroy said.
He also said that India needs to focus on decentralization not only from the Union government to state government but within states.
He feels decentralization will drive growth at the level of the districts adding growth upwards to the states.
Concluding his speech, Debroy hinted that in the next budget there could be a cut in personal taxes
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