The Union Budget that just got presented by the Finance Minister, Arun Jaitley laid out a good fiscal roadmap albeit he pushed back by a year the task of achieving fiscal deficit of 3% of GDP.
If this is indeed achieved then the Government would have left a good deal of funds for the private sector to tap into and help accelerate India's GDP growth.
On the topic of GDP growth rate, what is the kind of growth the FM is rooting for? Well, if his recent impromptu speech at Columbia University's School of International and Public Affairs is to be believed, anything less than 9%-10% on a sustainable basis will be less than enthusing.
"We need resources and I can't get resources until I grow by 9 to 10%. And therefore I would like to see India grow by that rate for the next 10 years," Jaitley is believed to have said.
However, if he were to reach anywhere close to that target, there will be immense requirement of capital and not all of it can be sourced internally. Therefore, the Government will have to make the domestic environment more conducive for doing business which can then act as a magnet for long term capital inflows.
Truth be told, India does have the demographics and the capabilities to bring out a sustained high growth in its economy for many more years to come.
What it does need is the right framework and systems that ensure that there's free and fair competition amongst all market participants and there are no excess regulations that stifle entrepreneurship and job creation.