Putting at ease some fears over currency and market volatility due to the ongoing financial crises in China, senior economist Dr Omkar Goswami said in Indore he didn’t expect any significant repercussions on India.
“There are two parts to the financial turmoil in China. I don’t see any serious impact of the crash in global stock markets and Chinese market on India. Everybody, including Moody’s, accepts the fact that India is on target to achieve the growth of 7.5% over the next three to four years and unless the government commits some serious blunder, which I don't think it will, India should grow at 7% to 8%,” he said.
Dr Goswami, who has served on the board of Infosys and other leading companies, was speaking to media persons at an event organised by the Indore Management Association (IMA) in Indore on Tuesday.
Dr Goswami said there would be some impact in terms of real economy as China was the region’s engine of growth and when the engine sputters, other countries too are likely to feel some impact. But, he added, the impact would be minimal on India.
On a query on whether Reserve Bank of India governor should cut the interest rates, Dr Goswami said now was not the time to tinker with interest rates but maintain status quo as the rupee was weakening.
Further, he stressed the need to cut the red tape and ensure that India climbs up on the ‘ease of doing business’ ranking to see growth in the country’s stagnant manufacturing sector.
“There is an urgent need to build infrastructure, be it roads or power,” he said.
Regarding the National Democratic Alliance (NDA) government’s Make in India initiative, he said making slogans was a good thing but it was necessary to follow them up with implementation on the ground.
He said it was too early to judge the performance of finance minister Arun Jaitley as he has presented only one full budget and has been in the office for just 15 months.