Home / Economy / Indian economy to grow 7-8% in coming couple of decades: Panagariya
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Niti Aayog Chairman Arvind Panagariya on Wednesday informed that the Indian economy which has already grown quite rapidly in the past 17 years, will further stretch out at around 7-8% in the coming couple of decades.

Speaking at an event organised by Columbia Global Centre here, he refuted the idea of comparing the Indian economy with that of Sri Lank which is going through a huge economic crisis at present.

Panagariya, who is currently a Professor of Economics at the Columbia University laid emphasis on Indian economy and said, “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." 

He also 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, he added.

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

Speaking about Goods and Services Tax (GST), Panagariya said, "We should get two GST rates (structure).... Also, we need to prune the GST exemption list."

GST, a nationwide 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 imposes a low rate of 5% tax on essential goods and services and top rate of 28% on cars is levied. The other slabs of tax are 12 and 18%.

He also slammed those experts and politicians who are comparing the current economic situation of Sri Lanka with that of India which is growing quite rapidly.

"It is nonsense to compare the current economic situation in Sri Lanka with India. India is a very stable economy," Panagariya added.

Meanwhile, the Union Finance Ministry on Tuesday reported that the Indian economy is on course to achieve projected 8-8.5% growth based on high-frequency indicators for the first quarter of the FY 2022-23.

On January 31, the Economic Survey tabled in the Parliament projected the real GDP during 2022-23 to grow at 8.0-8.5%. 


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