NEW DELHI: Pointing out that the cash balances of state-owned enterprises (PSUs) look “exciting”, Chief Economic Adviser Arvind Subramanian on Wednesday suggested that the PSUs should invest more to kick start the economy and put it back on the growth trajectory. The PSUs, the CEA said, could make a real contribution to the India growth story.
Speaking at a workshop on management of PSUs, Subramainan said, “In July last year India was on the verge of macro-economic crisis... However, 16 months on, the picture is very different. There has been a remarkable turnaround in the economy since the last few months.”
The country’s Chief Economic Adviser said that prospects for the Indian economy look very bright as it has seen remarkable turnaround in the recent months aided by a slew of reforms unleashed by the government and the low current account deficit (CAD).
“The biggest change is the new government in power that has unleashed a slew of reforms. Prospects for the Indian economy should be very bright going forward,” the CEA said.
Stating that CAD was now within “manageable territory”, Subramaniam said: “India has benefitted a lot from the falling commodity prices which have helped bring down CAD.” In the global context, India is looking “very special”, he noted, adding that the World Bank in its report on Tuesday revised downwards the growth forecast for “every major country except India”.
The World Bank said India would catch up with China’s economic growth in 2016-17. The multilateral lender also predicted a growth rate of seven per cent each in 2016 and 2017 fiscal as against China’s 7 per cent and 6. 9 per cent respectively.
In his address, Union Heavy Industries & Public Enterprises Minister Anant Geete said his Ministry had a “zero interference” policy in the day-to-day functioning of PSUs.