In a special pre-election series, 'It's The Economy', CNBC-TV18's Latha Venkatesh speaks to Niranjan Rajadhyaksha, research director & senior fellow at IDFC Institute; Rathin Roy, director of NIPFP & Economic Advisory Council to the Prime Minister (EAC-PM) and Maitreesh Ghatak, professor of economics at London School of Economics to analyse how the macros fared during the BJP tenure since 2014.
Roy said, "I think there is a bipartisan problem with growth. The growth deceleration is happening for reasons that have nothing to do with the existence of one government or the other, but because the pattern of demand that actually fuels growth for the last 25-27 years, that is not able to sustain growth. Having said that, the government has done its macroeconomic job in terms of supporting growth. As you just said, inflation is under control and more importantly, it is not very volatile, the current account deficit is well under control and exchange rate management has been reasonable. So on balance, I would say, yes, growth is falling and that is a matter of bipartisan concern, but macroeconomic management has generally been sound over the last five years."
Rajadhyaksha said, "I agree with Roy that it is a bipartisan problem, the growth issue. I would say that the government has done a middling job. We usually compare with the 2008 boom, but that was a synchronised global boom, which helped India as well. The question is how do you push potential growth out from say seven percent to nine percent and perhaps that is what we will come to later. It is whether the supply side reforms were adequate to push that growth. So, I think it is a middling growth record."