Deregulation, combined with the increased adoption of AI and a trade policy focused on greater market access, could be transformative for India in achieving a higher economic growth trajectory for an extended period, said Franziska Ohnsorge, chief economist for the South Asia Region, World Bank . Access to 50% of the world’s GDP through trade agreements would also boost FDI inflows to India, Franziska told Prasanta Sahu. Edited excerpts.

Q: Do you share the optimism of the Indian government that the GST reforms, income tax relief, and monetary easing will boost consumption and trigger a virtuous cycle of investment?

The government has had a series of reform efforts. The laws to reform the labour market were also passed several years ago, and there is now a renewed urgency in actually

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