India's economy is going through a difficult situation but not in a crisis, NITI Aayog distinguished fellow Ramgopal Agarwala said in Kolkata on Saturday.
Reforms like demonetisation, Goods and Services Tax and Insolvency and Bankruptcy Code were required but hastily implemented, Agarwala said in his personal view.
"In my personal opinion, the country is in a difficult situation but not in a crisis. The reforms implemented were necessary but hastily implemented,” he said at the Bharat Chamber of Commerce.
According to him, demonetisation was actually 'note badli' (change in currency notes), not 'note bandi' (note ban). "Black money was running sore on the economy. But more thinking had to go in for implementing demonetisation," Agarwala said.
Talking about GST, he said, "In my personal view, it was a good step but not enough preparation was done while implementing it. The same is true for IBC." Agarwala said that these reforms could have had some kind of effects on the economic slowdown.
Speaking on the economic growth, he said, "Personally I feel, inclusiveness is the most important factor for achieving good growth. All castes and communities have to be included while ensuring gender equality." For prosperity, he said, the country's economy needs to grow at least by 8 percent annually for the next 15 years.
Agarwala stated that the private sector needs to make investments for which the monetary policy will have to be eased.
Regarding the Centre's target of achieving $5 trillion Indian economy by 2024-25, he said, "It is desirable. But income opportunities have to be created for the aspirational middle class." The revival of housing sector could lead to a high level of growth, he added.
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