PUNE: Increasing savings and ensuring the growth of the manufacturing sector along with high exports is the key to achieve a growth rate of 8 per cent per annum, said renowned economist and former Deputy Governor of the Reserve Bank of India Dr Rakesh Mohan.
Dr Mohan was in city on Tuesday to deliver a lecture on Moving India to a new growth trajectory. The event was organised by Pune International Centre (PIC). Former non-executive director of Tata Sons Limited, Ishaat Hussain and PIC Honorary Director Prashant Girbane were also present.
Dr Mohan said, “There is a need to get the focus back on high growth. It must be understood that effective distribution is necessary but we can’t distribute unless we grow. To achieve this, it would be crucial to encourage domestic savings, step up tax collection and invest in building the necessary infrastructure.”
Highlighting the issue of stagnation in the manufacturing industry with zero growth seen in exports, Dr Mohan said, “It can be observed that all countries that sustained high growth rates did so on the back of manufacturing. Hence, measures must be taken to push the manufacturing sector with increased investment in research and development. If we are aiming to grow at 8 per cent per year, the manufacturing sector must grow at 10 per cent and manufacturing exports at 12 per cent annually.”
Stressing the need for a second green revolution Dr Mohan said that the country’s agriculture is skewed towards cereals but it must be reoriented to cover other areas such as dairy, meat and horticulture. Having an efficient cold chain would do away with fluctuation in the prices of perishable goods and make them available round the year, he added.