Lack of reforms affecting India’s growth: Expert

November 8th, 2011 - 9:00 pm ICT by IANS  

New Delhi, Nov 8 (IANS) India has the potential to register double-digit growth but lack of reforms is holding the country back, a senior economist said Tuesday.

“Some will say 7.5 or 8 percent growth is good enough. But this does not do justice to the growth potential of India,” said Claude Smadja, former managing director of the World Economic Forum and founder and president of Smadja and Associates Strategic Advisory firm.

“Reforms have stalled in the last four years,” said Smadja, adding that higher growth in the recent years was propelled by the reforms undertaken in 1990s and the first half of the last decade.

Indian economy is projected to grow at around 7-8 percent in 2011-12, against the government’s budgetary target of 9 percent.

Smadja welcomed the recently announced National Manufacturing Policy would boost growth, but said such policies should have been introduced much earlier.

India recently unveiled its first National Manufacturing Policy that aims to increase the share of manufacturing in the country’s gross domestic product (GDP) to 25 percent by 2022, from the current around 16 percent.

Smadja said in comparison to the countries like China, where manufacturing sector accounted for around 36 percent of the GDP, India’s target was “too late and slow”.

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