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The Economic Survey is all about focussing on the “big picture” and devising the blueprint for getting into the 8 per cent economic growth trajectory for the coming years, the Chief Economic Adviser, Krishnamurthy Subramanian, said on Thursday.
Detailed sector-specific reforms, on say the banking sector or NBFCs, will most likely be handled in the next edition of the Economic Survey that is due six months from now, he said.
Subramanian was responding to a question as to why the latest survey was completely silent on the banking reforms needed to fix the ailing banking system or the solutions to be pursued for addressing the current NBFC liquidity crisis.
“We wanted to focus on the big picture. This being the first Economic Survey of the new government that might potentially have five years to implement policies, we felt it is better to focus on the big picture and spell out the thought process that has to change for us to hit the 8 per cent growth levels,” he said.
NBFC crisis
On the NBFC crisis, Subramanian said that one has to be very careful to ensure that one does not perpetuate a situation of private profits and socialised losses. “The moral hazard that comes from it we have to be cognisant about,” he said.
The global financial crisis and what the US government did cannot be applied here. There is actually a need for looking at the structural issues in the Indian context, such as the asset-liability mismatch, he added.
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