Indian economy to grow 7-8% in next couple of decades: Panagariya

Indian economy, which has grown fairly rapidly in the last 17 years, will grow at 7-8 per cent in the next couple of decades, former Niti Aayog Vice Chairman Arvind Panagariya said on Wednesday.

Arvind Panagariya, NITI Aayog Vice-Chairman, NITI Aayog
Arvind Panagariya
Press Trust of India New Delhi
2 min read Last Updated : Jul 20 2022 | 10:34 PM IST

Indian economy, which has grown fairly rapidly in the last 17 years, will grow at 7-8 per cent in the next couple of decades, former Niti Aayog Vice Chairman Arvind Panagariya said on Wednesday.

He also rejected the idea of comparing India's economic situation with that of Sri Lanka, which is facing an economic crisis, and emphasised that India is a very stable economy.

"We have been growing fairly rapidly in the last 17 years... We will grow 7-8 per cent in the next couple of decades," Panagariya, who is currently a Professor of Economics at the Columbia University, said.

Speaking at an event organised by Columbia Global Centre here, he noted that the country's economy grew 7.4 per cent between 2014-15 to 2019-20.

The World Bank has cut India's economic growth forecast for the current fiscal to 7.5 per cent.

India's economy grew 8.7 per cent in 2021-22 where it had contracted 6.6 per cent in the year-ago period.

On GST, Panagariya said, "we should get to two GST rates (structure).... Also, we need to prune the GST exemption list."

A nationwide Goods and Services Tax (GST), which subsumed 17 local levies like excise duty, service tax and VAT and 13 cesses, was rolled out in July 2017.

Under GST, a four-rate structure that exempts or imposes a low rate of tax of 5 per cent on essential items and top rate of 28 per cent on cars is levied. The other slabs of tax are 12 and 18 per cent.

On certain experts and politicians comparing the current situation in Sri Lanka with that of India, Panagariya said, "it is nonsense to compare the current economic situation in Sri Lanka with India. India is a very stable economy.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Indian EconomyArvind Panagariyaeconomy growth

First Published: Jul 20 2022 | 10:34 PM IST

Next Story