India growth trajectory needs consensus on reforms: Gita Gopinath

Demystifying the fact that even after an economic surge, why India is stuck with a 5% growth rate, Gita Gopinath, professor of Economics, Harvard University, USA, in the opening plenary of the World Economic Forum on India said that three decades after they were introduced, India still does not have consensus on economic reforms. Not enough has been done to communicate the objectives of the reforms, which have often been introduced in response to international ratings.

India's challenge, Gopinath said, has been balancing equity, inflation and fast growth. To embark on a new growth path, India needs to create consensus on reforms, revitalize the manufacturing industry that will create better jobs in the organized sector, and remove rigid labor laws.

However asserting that the Indian government has consciously adopted a model of faster inclusive growth, Ashwani Kumar, Minister of Law and Justice of India pointed out "Indian democracy needs to reboot its constitutional balance." It needs 9-10% growth to address the aspirations of all people, including those on the margins of society. With some corrective measures improving transparency, he hoped India would reach a 7% growth rate soon.

India's current crisis is largely due to the lack of "confidence and comfort". Natarajan Chandrasekaran, CEO and managing director, Tata Consultancy Services, shared what he believed has gone wrong with the growth story and what can be fixed. He said the government failed to gain the trust of industry, largely due to its inability to deliver on economic targets and projects.