In an interview published in the Mint, Sanjeev Sanyal discusses his thoughts on the upcoming budget and the Indian economy. Regarding allegations that the new method for calculating GDP is flawed, Sanyal states, "...I agree that India’s economic statistics are not internally consistent with a GDP growth rate of over 7% per year. Data for credit growth, industrial production and exports do not seem to gel with such a high rate of economic expansion. However, it is disingenuous to make an accusation that the headline number is being deliberately massaged...Despite my reservations about the accuracy of the data, my reading is that India is still the fastest growing major economy in the world."
On reforms, he says, "the government now needs to step up and deliver on its promise of “minimum government, maximum governance”. I realize progress on GST (goods and services tax) is being stalled by the opposition in the Rajya Sabha, but the direct tax system can be radically simplified within the Union budget. Note that many of the important reforms are not under the finance ministry and will not be a part of the budget discussion. Therefore, we need other (sections) of the Indian state to contribute."
Read the interview here.