Arvind Panagariya, Professor of Economy at Columbia University and former Vice Chairman of NITI Aayog, says that India’s growth rate can be more than 7-8 percent in the next decade and by 2030, on the basis of 4 reforms made by the government, India will become the world’s largest leader in the world. Can become the third largest economy. He even said that with the increasing size of the economy, the boom in economic activities and the end of protectionism, India’s growth rate can go up to 9-10 percent.
Arvind Panagariya further said that I predict that India’s growth rate will be 7-8 percent in the next decade, but the condition for this is that we get rid of COVID. However, if we want to take full advantage of the 4 important reforms done by the government, then we have to open the economy and increase the size of our business activities.
Arvind Panagariya said in his statement that keeping in mind the major reforms he is talking about are Bankruptcy Code, Labor Reform, GST and Corporate Tax. Arvind Panagariya said this in a lecture series organized by the Institute of Economic Growth (IEG) in association with the Department of Economic Affairs, Ministry of Finance. This lecture series was organized on the occasion of 75 years of India’s independence.
Arvind Panagariya says that there is a large number of skilled and unskilled workers in India, due to which all the big companies of the world can be attracted outside China to set up their production units in India, for which we will have to work. However, Panagariya is not happy with the PLI scheme launched by the government in 13 sectors. Because they require huge amount of capital from the government.
He said that India has stuck to the old policy of making government investments in areas requiring heavy capital and protectionism. He further said that the subsidy under the PLI scheme is to be given on capital and not on labour. Arvind Panagariya says that a big challenge before India is to acquire land at a cheap rate. Apart from this, our biggest need is to open the borders for business activities and set up large number of labor based production units, only then we will be able to compete with the world.
But the government policies have made the acquisition of land so expensive and difficult, due to which it became very difficult for factories to acquire land, he added. Due to this huge cost of land acquisition, neither horizontal nor vertical development is possible in factories.
In this lecture series, he opposed protectionism and said that protectionism will not help the country’s economy. India needs to enter into free trade agreements with countries like the European Union, UAE, Canada and Australia to get a bigger market.
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