In the lead-up to the general elections, Krishnamurthy V Subramanian, India's former Chief Economic Advisor and current Executive Director at the International Monetary Fund (IMF), emphasised that inflation is currently within manageable levels, citing prevailing trends. He further advocated for a shift in perspective regarding the emphasis on small companies, suggesting that businesses which begin small but expand significantly are the primary drivers of job creation within the economy.
Subramanian urged for a reconsideration of the fixation on "small" enterprises, asserting that companies that fail to scale up remain limited in their capacity to generate employment opportunities, likening them to dwarves in the economic landscape.
Among his suggestions for the government to dwell upon post elections, he stressed on the need to continue work from a reformist mindset along with furthering of Make in India-related reforms to lower the cost of local manufacturing. Stating that India is doing well in maintaining a 7.6% growth projection despite global headwinds, he told CNBC TV18 that some of the bills passed in Parliament need to be taken to their logical conclusion as a lot of political capital has already been invested in them.
As he called for continued emphasis on infrastructure in physical capital, health & education in human capital as well as digital capital, he hoped for credit creation without any problems of crony lending and bad assets. Even as he pointed out the need for more work on 4 new labour codes and related subordinate legislations, he added that credit infrastructure & credit growth needs to increase significantly, especially for investment purposes.
