Hindustan Times | Developed country ambitions need deep structural reforms

India’s impressive growth performance has raised hopes of it becoming a developed country in the not-too-distant future. The Prime Minister has set 2047, the centenary year of Independence, as the aspirational target year. However, leapfrogging from being a low middle-income economy to becoming a developed country in the next 25 years requires raising the country’s per capita income by more than five times, from $2,600 to $10,205. This effectively translates into a per capita income growth at 7.5% per year and an aggregate Gross Domestic Product (GDP) growth at 9%. Read the full article here.

Stronger fiscal federalism

Former prime minister Manmohan Singh recently urged the Centre to do more to enhance the spirit of cooperative federalism. His comments were in the context of the changes made to the terms of reference to the 15th Finance Commission (15FC). These changes were made in July, quite late in the tenure of the 15FC, and especially when the final report was expected by the end of October.Read more 

Fiscal constraint prevents stimulus

The interim budget in February gave a substantial stimulus to the taxpayer. Almost three crore taxpayers moved out of the net, as the minimum threshold was raised. Further, the cash transfer to households led to some consumption push, not to forget the electoral gains.Read more