Structural reforms necessary to achieve 7-8% growth, says Jayant Sinha

Pitching for structural reforms, Minister of State for Finance Jayant Sinha on Wednesday said they were necessary for achieving a sustainable growth of 7-8 per cent and making India a $5 trillion economy in next 12 years.

"If we take our $2 trillion economy and get it on the sustainable 7-8 per cent growth rate then we have a situation when the economy doubles in 10 or 12 years to $4 trillion economy. If rupee strengthens we may end up getting closer to $5 trillion economy", he said while addressing the Delhi Economics Conclave in New Delhi.

Sinha also made a strong pitch for deep structural reforms to achieve a sustainable and non-inflationary growth of 7-8 per cent over longer period of time.

"We also need to get the economy up to a long term growth rate of 7-8 per cent, it will have ups and downs. But ultimately long term growth rate for the Indian economy has to be 7-8 per cent", he said.

Sinha said there was a need to control inflation at 4-6 per cent over the years.

Listing the priorities before the government, he said, there is a need to pursue macroeconomic stability, build world class infrastructure, unlock entrepreneurial energy and put in place social security system.

Sinha also made a case for supply side revolution to enable the country dramatically increase its growth potential.

As per official estimates, economic growth in the current fiscal ending March 2015 would be between 5.4 and 5.9 per cent.

The growth had slumped to sub-5 per cent in the earlier two consecutive fiscals.