Urgent Reforms Needed to Accelerate India's Economic Growth

India's GDP growth of 5.4% in Q2 2024-25 falls short of expectations. Charan Singh emphasizes lowering interest rates and encouraging private sector investment for accelerated growth. He argues for revisiting inflation targets and enhancing capital formation strategies to unlock India's economic potential.

Expressing dissatisfaction with India's second-quarter GDP growth, Charan Singh, CEO of EGROW Foundation, highlighted the urgent need for corrective economic measures. Singh underscored that India has the potential for a much higher growth rate than the recorded 5.4%, considering the country's demographic advantages.

The GDP growth in Q2 of FY2024-25, at 5.4%, was notably below the Reserve Bank of India's forecast of 7%. Official data by the Ministry of Statistics and Programme Implementation revealed the GDP stood at Rs44.10 lakh crore, compared to Rs41.86 lakh crore during the same period last year.

Singh advocated for revisiting the interest rate policy, suggesting that following the US's lead in interest rate adjustments could be beneficial. He emphasized the importance of proper capital formation analysis, urging immediate corrective measures. Furthermore, Singh proposed a more flexible interpretation of inflation targets and highlighted the private sector's crucial role in strengthening economic growth.

(With inputs from agencies.)