Sanjiv Sanyal, member of the economic advisory council to the Prime Minister on Saturday said that the country's internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic.
Speaking at the Bharat Chamber of Commerce in Kolkata, Mr. Sanyal said that there has been an unprecedented crisis during the two-year-long pandemic and the Indian economy has emerged stronger after that.
"The world has never been in equilibrium", he said indicating that dynamics keep changing.
Mr. Sanyal said, "The policies adopted during the last two years has made the Indian economy emerge stronger. The internal market is in a good position, banking system is much better now compared to the crisis before. The macroeconomic stability is in a comfortable zone".
The economist said that the supply side, which went into complete disarray, has improved now and the benefit of getting resources after the introduction of GST has now began to kick in.
According to him, India is sitting on huge foreign exchange reserves which can be used when the country needed to.
"We need to deal with an uncertain future. The uncertainty is so much it has becomes difficult to frame policies at times".
Mr. Sanyal said "Earlier it was a Newtonian (mechanistic) world ... Equilibrium was a term not related to any economic connotation".
He said India had rightly moved to a market-based economy in 1991 with aspirations to access some optimal equilibrium. "But there is no such equilibrium in economies".
Asked about the country's needs in the next 25 years, Mr. Sanyal said the first priority would be to enforce contract for delivering justice and no legal jugglery should be allowed to interfere.
There is need for reforms in administration as well, he added.
