Subramanian Swamy (file photo)

“What requires reforms in our country is macro economics. If we are to solve unemployment and lift people above poverty line, we need to grow 10 per cent per year for 10 years. We have to ensure that agriculture sector is also reformed positively to empower farmers,” Subramanian Swamy, MP has said.

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“Our present focus is on micro-economic projects such as rural lighting, lavatories for rural areas, etc. We must learn to focus on the general equilibrium of the economy. Only then we can think of such ambitious targets such as $5-trillion economy. It is not beyond our reach. In real terms it takes more than 10 years. If we grow 10 per cent a year for 14 years, then our country will become a developed country, it will overtake china,” he said.

He was addressing the young entrepreneurs on the topic — ‘India's $5-trillion GDP target — Aspirational or Realistic?’ at the valedictory meet of TiEcon Kerala 2019.

India can be a world economic power by 2050. The growth is dependent on the model we adopt. The model should have four clear parts — objectives, priorities, strategies and resource mobilisation, he said.

Abolish personal IT

On resource mobilisation, Swamy said “we are having demand problem and not supply problem. We should take steps that give people greater purchasing power. Tax concessions should be at the side of demand. Personal income tax should be completely abolished and raise resources by other means.”

Personal income tax of ₹4-lakh crore can be raised by alternative sources of revenue. The rate of interest on fixed deposits should be for five years and more, raised to nine per cent, and on loans, not more than 9 per cent. If we do this the flow of funds will start and financial market will come alive, he added.