India Needs 'Outward-Oriented Growth' To Hit 8-10% Rate: Chief Economic Advisor

New Delhi: Stating that Brexit, or Britain's exit from the European Union, will leave a "muted" impact on India, Chief Economic Advisor Arvind Subramanian on Tuesday said the economy can't achieve 8-10 per cent growth rate without "outward-oriented growth strategy".

"There will be some impact of Brexit on India. But broadly impact will be muted... We can't achieve 8-10 per cent growth without outward-oriented growth strategy," Mr Subramanian said at an event organised by 'India Policy Forum 2016'.

"If you (India) have outward-oriented growth strategy, you can sell in domestic markets also," he added.

On the economic growth still above 7 per cent level despite exports falling for the last 17 months, he said, "If you look at export volume (non-oil volume), India by no means is outlier. Decline in exports is due to slowdown in world demand."

Noting that India is a service sector powerhouse, Mr Subramanian - who was Senior Fellow at the Peterson Institute for International Economics - said that he thinks government's 'Make in India' and efforts to improve manufacturing sector is essential to achieve higher growth rate.

Mr Subramanian said India can still achieve 15 per cent export growth and can raise service export from 0.2 per cent to 1.5 per cent.

Talking about protectionist measures adopted by developed countries, the Chief Economic Advisor said India and other developing countries should keep their economies open.

He said that post-Brexit, Germany's role has become usually large. "Germany is running world largest Current Account Surplus."

Mr Subramanian noted that post-Brexit, Trans-Pacific Partnership (TPP) negotiations will be test case. In lighter vein, he said, "After Brexit we can say, perhaps hyper globalisation is dead, long live globalization."