Arvind Panagariya, Chairman of the 16th Finance Commission, stated on Wednesday that India can realistically increase its economic growth to around 9% from its present rate of around 7% by executing a few more reforms over the next five years.
Panagariya, who served as Niti Aayog's Vice Chairman from January 2015 to August 2017, stated that Prime Minister Narendra Modi has worked hard over the last decade to make India a business-friendly environment, and as a result, investment is flooding in. He said the economy is open and in the next 2-3 decades, India can sustain a very rapid growth.
In the third quarter of FY24, the Indian economy expanded at an 8.4 percent rate, exceeding all predictions. However, famous economists Raghuram Rajan and Arvind Subramanian have expressed concerns about the country's economic growth. While Rajan said India should not believe the hoopla about its economic development, Subramanian claimed the latest GDP figures are 'totally perplexing'.
The former Niti Aayog VC also responded to Subramanian's Mystifying' comment, saying: "If you are mystified, then first you have to check, (whether) mist is on your own glasses...or somewhere else.
Panagariya stated that the methodological modification for computing GDP under the Modi government was proposed by committees formed by the previous administration (UPA government). "No one has questioned the honesty of those who calculate these (GDP) estimates. "This is a new type of phenomenon that I don't understand," he stated.
The economist stated that if detractors claim there is a flaw in the process for calculating GDP, "they must come in and point out the flaw so that we can discuss how to make the improvements."
Subramanian, India's main economic advisor from October 2014 to June 2018, has stated that the country's newest GDP figures are "absolutely mystifying" and impossible to understand.
"To be honest, I don't comprehend the current GDP data. I say this with true respect and things. They are completely perplexing. They do not add up. "I'm not sure what they mean," Subramanian stated at the India Today Conclave 2024.
