(MENAFN- KNN India)
New Delhi, Dec 13 (KNN) In a comprehensive economic assessment, Arvind Panagariya, chairman of India's 16th Finance Commission, has outlined an optimistic trajectory for the nation's economic growth, projecting the country's gross domestic product (GDP) to expand to between USD 6.5 and USD 9 trillion by 2030.
Speaking at the Times Network India Economic Conclave 2024, Panagariya highlighted the remarkable resilience of the Indian economy, which has demonstrated substantial growth despite facing significant challenges including the financial crisis, non-performing assets crisis, and the COVID-19 pandemic.
Despite these obstacles, the economy has maintained an impressive growth rate of approximately 10 per cent. The economist emphasised the potential for accelerated economic expansion, suggesting that implementing pending reforms could potentially push GDP growth in current dollars to 11-12 per cent.
Even with a conservative estimate of 8 per cent growth, Panagariya projects the economy will exceed USD 7 trillion, positioning India significantly ahead of the next competing nation.
Global financial perspectives appear to align with this assessment. In September, rating agency S&P Global predicted India would become the world's third-largest economy by 2030-31, with an anticipated annual growth rate of 6.7 per cent in 2024-25.
However, recent economic data indicates a more measured performance, with GDP growth slowing to 5.4 per cent in the September quarter and 6.7 per cent in the first quarter of the current fiscal year, compared to 8.2 per cent in the previous year.
Addressing concerns about economic inequality, Panagariya challenged prevalent narratives about uneven recovery.
He characterised the post-pandemic economic rebound as comprehensive, stating, "As we have grown, we have lifted all the boats." While acknowledging an increase in the proportion of wealth held by the top 1 per cent relative to the bottom 5 per cent, he dismissed claims of systemic economic disparagement.
The finance commission chairman expressed confidence in the fundamental strength of India's economic foundations, predicting a return to approximately 7 per cent annual economic growth and characterising the country's pandemic recovery as successful 'with flying colours.'
As India continues to navigate global economic complexities, Panagariya's projections offer a promising outlook for the nation's economic potential in the coming decade.
(KNN Bureau)
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