We are not the fastest growing economy, it’s factually incorrect: Surjit Bhalla

In an exclusive interview with India Today TV, prominent economist and former IMF executive director Surjit Bhalla discussed India’s economic performance and the decline in foreign direct investment since 2015. Bhalla attributed the drop in FDI to the revised Bilateral Investment Treaty, which introduced mandatory local remedies and a five-year cooling-off period for foreign investors. He emphasized the need to revert to pre-2015 FDI frameworks and lower taxation for foreign investors to boost economic growth. Addressing the government’s economic narrative, Bhalla stated, “First of all, the fastest growing economy, I mean, it’s just factually incorrect. It doesn’t help either the government or anybody else that we continue to say we’re the fastest growing economy when we are not.” He also pointed out that India’s market size is often overestimated, noting, “The size of our GDP is less than that of California.” Furthermore, Bhalla suggested that the ruling BJP’s consistent electoral success might have “lulled them into a comfort zone,” reducing their incentive to implement politically costly but necessary economic reforms, such as land acquisition changes and a trade deal with the United States.

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