Millennium Post (Kolkata)

‘India can push economic growth close to 9% by implementi­ng few more reforms in next 5 years’


NEW DELHI: India can realistica­lly push its economic growth close to 9 per cent from the current 7 per cent or so, by implementi­ng a few more reforms in the next five years, Chairman of the 16th Finance Commission Arvind Panagariya said on Wednesday.

Panagariya said Prime Minister Narendra Modi worked hard over the past 10 years to make India a friendly place for businesses, so investment is coming in.

“Today, the economy is open. In the next 2-3 decades, we can sustain a very rapid growth,” he said, while speaking at the Times Now Summit.

India's economy grew at better-than-expected 8.4 per cent in the third quarter of FY24 — the fastest in the past one-anda-half years. “India is currently growing in real rupees at about 7 per cent or so per year. “Certainly with a few more reforms in the next five years, we can realistica­lly push it to close to 9 per cent, certainly somewhere at 8-9 per cent and that can be sustained easily for a couple of decades,” the economist said.

Responding to a question on former chief economic adviser Arvind Subramania­n saying India's latest gross domestic product numbers are ‘absolutely mystifying' and difficult to comprehend, Panagariya said, “If you are mystified, then first you have to check, (whether) mist is on your own glasses... or somewhere else.” Panagariya said the methodolog­ical change for calculatin­g GDP during the Modi government was recommende­d by bodies appointed by the previous administra­tion (UPA govt).

“Nobody... has questioned the integrity of those who actually do these (GDP)numbers. This is a new kind of phenomenon, which I don't understand,” he said. Panagariya said if critics are saying there is some fault with the methodolog­y of calculatin­g GDP, “they have to come in and point out out the fault so that we can talk about how to make the improvemen­ts”.

India’s economy grew at better-thanexpect­ed 8.4% in Q3 FY24, fastest in past one-&-half yrs

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