CEA urges India Inc to stop ‘socialising losses’

Chief economic advisor (CEA) K Subramanian has urged India’s private sector to change mindsets and refrain from the tendency to grab profit and socialise losses and also seek sops in times of stress. He also stressed that only investment can revive growth in the Indian economy, as consumption boosts an economy with per capita income of US$ 10,000 or more. He compared the private sector to a grown-up man, stating, “This 30- year-old man (reference to 1991 reforms) must start to stand on his own feet. This adult cannot keep asking his father for help and live with the idea of personalsing profit and socializing losses.” He added with respect to consumption, “Consumption acts like a force-multiplier, but it isn’t the key driver of growth in a low-per capita economy but it’s investment what is really critical to create jobs and for that we need investments, particularly by private sector.”