"The first year of the new government will be its honeymoon period. And after a year, they will have to take the policy decisions. If they do the right thing, we will be back on the growth path. Though achieving 8 per cent may be difficult, 7-7.5 per cent is not," Ahluwalia told reporters on the sidelines of 'India Economic Outlook Conclave' here.
He further said that though investments have reduced from 35 per cent to 32 per cent, even in that scenario the country will be able to achieve its targets.
Besides, he said, rapid implementation of goods and services tax (GST) is the systematic reform that can be brought by the new government.
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Ahluwalia said the growth of the economy will also depend on the growth of the industry as a whole.
"There has been a slowdown in construction, mining and manufacturing sectors. The manufacturing sector has to grow double digit. Also, the growth of the small and medium enterprises depends on the growth of the industry. If the industry does not grow, the SME sector, too, will not grow," he added.
He further said the new government should also lay thrust on the effective functioning of the two very important groups - the Cabinet Committee on investment and the project monitoring group in the cabinet secretariat - which have already been set up and have been effective in implementation of various infrastructure projects.