Urgent task before government is to revive growth momentum & investment climate: Montek
We can do a lot by removing impediments which are holding up large investment projects & give clear signals to investors that we will ensure macro balance.
I am not sure what exactly Kaushik said but he is too sensible a person to have said nothing can be done until after the next election. The urgent task before the government is to revive the growth momentum and the investment climate and this does not require progress on a wide range of basic reforms for which Parliamentary approval is necessary.
These reforms are important for longer term growth and I hope we will see progress there also, but right now we can do a lot by removing impediments which are holding up large investment projects in infrastructure and give clear signals to investors that we will ensure macro balance and a positive investment climate.
We are trying to do that and several steps have been taken. Clearances for coal for power have been sorted out and there are other steps in the pipeline.
Even in legislative matters there are areas where I hope a consensus will evolve so that some progress can be made. Of course, coalition governments have to work harder to achieve a consensus. Let's hope we can on some if not all issues.
The main point, however, is that bringing growth back to 8% is not something that requires fundamental reform immediately. After all we grew at 9% for five years without the benefit of the reforms that people are now talking about. We can certainly revive growth if we take a number of executive decisions in quick time while also doing what we can to push longer term reforms."
The author is Deputy Chairman,Planning Commission