New Delhi: Dr Krishnamurthy Subramanian, Chief Economic Advisor, Government of India, today said that the current slowdown in the Indian economy is more cyclical than structural in nature and the government has a well-thought-out agenda for reforms.
Speaking at the ‘FICCI Young Leaders Summit: The New Indian for a New India’, Dr Subramanian said that private investment is the key driver of economic growth and consumption is a force multiplier. ?The current slowdown is a lot more on the cyclical side. The steps we are taking, like the corporate tax rate cut, are intended to create a more favourable environment for investments that are required for sustained growth,” he said.
Dr Subramanian said, “Needless to say that there is a slowdown. But you estimate whether it is cyclical or structural by estimating the potential growth rate of the economy. If the growth potential has changed because of some structural aspects of the economy, then you can say that the slowdown is structural.”
He further pointed out that there has been no change in the demographics, demand, and the ability of companies to supply things. ?The government is now doing a lot of reforms, and reforms enhance the productivity of the economy. We are taking all the steps that are necessary,” added Dr Subramanian.
Dr Subramanian also talked about the importance of treating data as a public good. “Data is of the people, by the people, and hence should be for the people,” he said. The government should also promote the use of soft infrastructure like data infrastructure, he added.
The Chief Economic Advisor mentioned that there is enormous potential for utilizing the benefits that artificial intelligence and machine learning provide in the area of business.
“High-quality data is extremely important for machines to learn well and make predictions about the right business decisions,” Dr Subramanian said.
Dr Subramanian also highlighted that technology has been changing the nature of jobs for long and urged the government to be support the retraining of people to learn new skills.