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India’s Addiction To Export-Led Growth Is A Serious Challenge: Jahangir Aziz

India’s Addiction To Export-Led Growth Is A Serious Challenge: Jahangir Aziz

India is not unique, just another emerging market country that has benefited from global trade expansion since 2000, says Jahangir Aziz



Is there a stable growth differential between emerging market (EM) economies like India and developed economies and will that help in more capital flows to EMs? Speaking to BOOM’s Govindraj Ethiraj, Jahangir Aziz, Managing Director, JP Morgan argues that the growth differential is not very significant and shows that India has a lot to worry, unless it reduces its addiction to an export-led economy for fueling growth.



Aziz said that while the Indian government may be correct in focusing on manufacturing, the demand in the domestic market has to be expanded for sustained growth. He also supports disincentivising savings and incentivising spending to keep the rising savings rate in India in check.



Most economists have expressed their surprise at the new methodology being followed by the government that showed gross domestic product (GDP) growth data for the December quarter at 7%. While the government has used this data to hit back at critics of demonetisation, Aziz says that the fundamental problems related to our economy continues to be a matter of concern. Aziz wants the Central Statistics Office (CSO) to make its database of companies public so that economists and analysts can and understand the methodology followed by them to calculate GDP.



Watch this economics masterclass with Jahangir Aziz

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