India can achieve 8-10% growth in three years: Arvind Subramanian, CEA

CHENNAI: India can achieve economic growth rate of 8-10 per cent in the next three years, Chief Economic Advisor Arvind Subramanian said today.
"We have released the Economic Survey in February which has said about 7 - 7.75 per cent. In the medium term that includes three years time what we are aspiring and we can achieve is 8-10 per cent growth", Subramanian told reporters on the sidelines of an event function here.

While speaking on 'Governance and Economic Development' at the function, Subramanian said, "When we speak about good governance, we also have in mind that referee institutions in India which is CBI, CVC and of course the Courts. To some extent we look forward at these institutions also to be part of the structure that determines good governance in India".

"The referee institutions have become strong, and one consequence of bad governance we face in banking system is the writing off of the assets or NPAs".

"We have to write down these assets. But no public sector manager in India will write down the assets because he is aware that the referee institutions will go after him. So referee institutions have acquired certain legitimacy for some historical reasons in India", he said.

Referring to the governance between India and China, Subramaniam said that though political governance is different in the two countries, the economic governance is "very good" in China (compared to India).

"I think, the Communist party has been able to deliver infrastructure, certainty in terms of attracting investments and in providing basic needs to its population. I think the Chinese state is really a good example of what we think of good governance", he said.

"What they are able to do is quite remarkable. And that is why, in the long run, we too need to improve our governance in order to have that kind of growth", he said.

Stating that corruption and bad governance affect the underprivileged in a society, he said, "the elite class has the option of exiting bad service. For example, if public schools are bad, we take our kids to private schools. If colleges are bad, we send our kids to higher education. We have the option of exiting from weak governance and corruption".

"But it is the poor and underprivileged who do not have this option," he said.

The function was organised by the Institute of Public Auditors of India.