Arvind Panagariya, the Chairman of the 16th Finance Commission, expressed optimism about India's economic growth potential, stating that with further reforms in the next five years, the country could realistically achieve a growth rate close to 9 percent, up from the current 7 percent. He credited Prime Minister Narendra Modi's efforts over the past decade in making India more conducive to business, resulting in increased investments.
Speaking at the Times Now Summit, Panagariya highlighted India's open economy and predicted sustained rapid growth over the next few decades. The recent third-quarter GDP growth of 8.4 percent surpassed expectations, indicating the country's economic resilience.
Addressing concerns raised by former chief economic adviser Arvind Subramanian regarding the complexity of India's GDP numbers, Panagariya urged critics to examine the methodology carefully before making judgments. He emphasized that the changes in GDP calculation methodology were recommended by bodies appointed during the previous administration.
On the issue of electoral bonds, Panagariya acknowledged the challenges in reforming political funding, citing the difficulty in implementing changes. He recalled supporting the arguments presented by former Finance Minister Arun Jaitley in favor of electoral bonds.
Panagariya advocated for privatization of public sector banks, citing the need to reduce their numbers and emphasized the importance of implementing reforms in land, labor, and agriculture sectors for sustained economic growth.
Read also | India's 2025 GDP Growth Estimate Upgraded to 6.8% by Morgan Stanley
