THE assertion by the Reserve Bank of India in its latest bulletin that India would be able to sustain 8 per cent annual GDP growth, is truly reassuring -- particularly against the background of constant allegations by vested interests that India is chasing an impossible -- and even fake -- dream of high GDP growth. An article in the bulletin emphasises that there are good and substantial markers of high sustainability of the country’s economic growth available to underline the sense of assurance. A systematic political campaign has been underway in the country for the past some years to disprove the official claims of healthy economic growth.

 

The campaigners of this negative narrative insist that most of the markers of the economy have been faked or temporarily hyped for the sake of propaganda for benefits in elections and that such fakeness can never last and the weaknesses of the national economy would get exposed soon. The RBI assertion, therefore, comes as a good answer to the doubts and questions. There may still be a few grey areas in the Indian economy needing appropriate attention, all right. But that is understandable in the sense a national economy of the size of India’s is a continuous work in progress and needs a constant course-correction to adjust to the lows and highs of the growth trajectory. The Indian economy is no exception to this general global experience. Yet, given all the factors available at hand, the Indian economy can be described as a safe ecosystem in which many robust elements are all the time protecting the country from several vulnerabilities. Among the strongest elements protecting the Indian economy are healthy indirect and direct tax collection , lower subsidies and strong momentum acting as a forward-driving growth engine.

 

The article authored by a team headed by Deputy Governor Michael Debobrata Patra, therefore, insists that India is in a position to sustain its 8 per cent GDP growth over reasonable length of time and power the economy appropriately. Obviously, the article in the RBI bulletin is not a part of any propagandism and considers all the factors on professional ground beyond fear or favour of any political infliction. In the past ten years, the Indian economy has grown in leaps and bounds simply because right reforms and operational policies were adopted by the Government. The country also saw a major capital influx into the economy from the Government sector, triggering better growth and enthusing the private sector to start investing in increasing proportions. After sustained efforts on this front, the private sector is now beginning to make greater capital investment in newer ventures -- which is being considered a positive sign of growth. Because there is money in the market, the common consumer’s sense of hurt over rising prices appears to have waned a little, no matter the political outcry on that count by the Opposition camp. Prime Minister Mr. Narendra Modi’s attempt is to raise the level of national growth discourse by encouraging common people to be part of the bigger India story by making definable contribution to growth.

 

This participation of people at the grass-root level in economic activity -- thanks to massive dose of inclusive finance -- is another reason of the high sustainability of the 8 per cent GDP growth. What is actually work, thus, is the positive mindset of the common people about the national economy and national affairs. No matter the politically-driven criticism of the economic policies, the common people realise the intrinsic strength of the Indian economy -- which gets reflected so well in the RBI assertion.