Quashing several hopes, Chief Economic Adviser Arvind Subramanian underscored that big- bang reforms were frankly not applicable to a democratic country like India, where there were multiple veto centres, multiple decision making centres. He said that such big-bang dramatic reforms were possible only during time of crisis and that the country was not in crisis.
He highlighted that there had been dramatic improvement in the economy, from where it was in July 2013, when it was just about coming out from macro-economic crisis. He pointed that since then there has been a healthy turnaround in the state of the economy, with the inflation coming down, current account deficit improving and stock markets doing well.
Additionally, he also took a note of a growth figure of 7.4% for the economy for this year and forecast of 8-8.5% for the coming year. He validated this forecast and believed the acceleration of growth to be possible on account of easing prices of oil, growing profitability of corporate and monetary easing which had just started.
He, while comparing the fiscal indicators from the government and states, took a heart from the capital expenditure figures which though higher by Rs 150,000 crore, was just about 0.5% higher than those of states since the states get more consolidation from the centre.