Reforms to fuel India's 8 per cent growth goal, says Nouriel Roubini
India will be one of the «great global superpowers» in the next few decades but it must stay the course on structural reforms to raise its economic growth rate to 8% from 6-7% now, said Nouriel Roubini, professor emeritus at Stern School of Business, New York University.
In a conversation with Kotak AMC MD Nilesh Shah, Roubini shrugged off concerns about coalition politics derailing the country's reforms momentum. «I think there is some cohesive view that certain types of reforms have to be done, regardless of who is in power,» he said.
China is slowing and external headwinds are gathering force, so India needs to get the reforms direction right and keep going even if the momentum may at times falter, he said. «Whether it's land reform or labour market reform or bankruptcy reform or more financial inclusion, more investment in skills and human capital, more reform of the bureaucracy and provision of public services-the list is very long,» said Roubini, making a strong case for building on the reforms already undertaken.
A lot of high-tech manufacturing activity may move to India in the wake of the so-called «reshoring» and «friend-shoring,» Roubini said.
Competition policy
India must curb anti-competitive practices, enabling startups and small firms to spur innovation. «In a world in which there is more technology, there is a risk of concentration of economic power-of oligopolies and monopolies,» said Roubini.
«Of course, every country may need to have some national champions, but you can not have really big
