India being a labour-rich country with enough institutional maturity can get to 8% growth which will be distinctive, disruptive and responsible, NITI Aayog vice chairman Suman Bery said.
However, the fact is that the north of India has not been traditionally doing as well as the south of India and this can create tensions in a federal polity, Bery cautioned.
“So 8% growth or something approximating that means continuous change that needs to be politically managed,” he said.
“And if I wanted to bet on India for the next 25 years, I would point to first, the fact that we are not labor constrained in a world which is increasingly labor constrained, but much more importantly, that we have the institutional maturity of a functioning democracy with established rules of the game for the transfer of power we have just seen magnificently in the state elections,” he added.
Bery was addressing the Global Economic Policy Forum 2023, organised by the Confederation of Indian Industry (CII) and the ministry of finance.
According to Bery, the NITI Aayog’s governing council under Prime Minister Narendra Modi and with state chief ministers as its members has shown a very profound shared commitment to the progress of India.
“This is one of the reasons why in the last decade, we have had so much success in rolling out national programs, including the digital public infrastructure or the JanDhan accounts,” he added.
Talking about India’s vision for growth in the Amrit Kaal, Bery said economic growth in a country like India is a prerequisite for equity. “So growth is not an end in itself, but it is a means to an end to raise living standards and to secure India’s strategic and institutional economy,” he said.
“However, this growth needs to be inclusive, pro-people and female-led growth as envisioned by the PM,” he said.
According to Bery, India’s economic growth hinges upon states and is determined by the fact whether states play the role of an enabler or an obstacle. “The task is how do we not only at the Union level, but at the individual state level, council states to strike the right balance between facilitation and regulation,” he added.