Indian Economy Will Be Running Faster Than The US And China In The Medium Term: Sanjeev Sanyal

New Delhi: India is set to outpace the world’s two largest economies — the United States and China — in the medium term, according to Sanjeev Sanyal, Member of the Prime Minister’s Economic Advisory Council. 

Speaking in an exclusive interview with Republic Media Network's Editor-in-Chief Arnab Goswami, Sanyal said that the country’s growth momentum, backed by reforms and structural stability, puts it in a uniquely strong position.

“We will cross Germany in about 24 months to become the third-largest economy in the world, unless something very catastrophic happens. And then we will still be running faster than the US and China,” Sanyal asserted.

He described the recent Goods and Services Tax (GST) restructuring as a “classic process reform,” which builds upon the structural overhaul brought by the GST’s initial rollout. “We did the structural reform by introducing the GST. We then stabilized it, and now we are doing the process reform to get that system to work a lot more efficiently,” he said.

Sanyal stressed that India’s macroeconomic fundamentals remain robust despite global headwinds. Inflation has remained contained at around 2%, sovereign ratings have seen an upgrade, and the banking sector, he noted, is in strong health. “In fact, with all the changes, there is a danger that inflation will be too low and fall below the Monetary Policy Committee's target range,” he pointed out.

Also Read: 'Temples Were Banks And Venture Capitalists...': Sanjeev Sanyal On How Ancient India Ruled Global Trade | Republic World

Looking forward, Sanyal signalled that more big-ticket reforms are on the way. He revealed that former Cabinet Secretary Rajiv Govaji has been tasked with leading two newly constituted committees to “radically deregulate large parts of the economy.” Additionally, the government has tabled the Jan Vishwaas Bill, which seeks to decriminalise more than 330 provisions across 16 different Acts, paving the way for a more business-friendly environment.

“There is going to be a series of measures in various sectors like shipbuilding, electronics, and other areas. This is not the end of it — there is more to come,” Sanyal said, underlining the Modi government’s intent to push ahead with reforms.

With India’s growth outpacing peers and reform momentum gaining ground, the government’s economic roadmap appears focused on consolidating its position as one of the world’s fastest-expanding economies.