Former Niti Aayog vice chairman and Professor of Indian economy at Columbia University, Arvind Panagariya, has said that India has the potential to achieve 10 per cent growth rate, but it needs major reforms in labor laws and land acquisition laws.
Speaking at the inaugural “New India” lecture series, launched by the Consulate General of India in New York, Panagariya pointed out that Indian economy grew 7.5 cent in the first three years of the Narendra Modi government, but two major reforms – demonetization and goods and services tax – brought the growth rate down, reported PTI.
“By all accounts, I have no doubt that (India) will get back to eight per cent plus (growth rate). India really today is probably the only game in the town,” Panagariya said at the meet inspired by Prime Minister Narendra Modi’s vision of a new India by 2022, and initiated by the Consul General of India in New York Sandeep Chakravorty.
Panagariya opined that although China is probably growing at 6-7 per cent but its rate is likely to decline to five in the years to come. He added that India will sustain its high growth rate for the next two decades at least with the current trajectory of reforms, unless it starts to make “mistakes again.”
According to Panagariya, India has got the potential to grow at10%.
“Certainly, there is no doubt that we have got the potential to do 10%,” he said. “For India to achieve the double-digit growth, the country needs major reforms in labor and land acquisition laws. It also needs significant privatization and a major reform of civil service, which is quite not sufficient to handle the large economy that India is now,” Panagariya said.
Panagariya also came down hard on banks in India giving loans without any collaterals.
“It is scandalous. What kind of culture are we promoting? Absolutely unforgivable If one looks at the banks situation, default by the farmers are relatively small. the problems are all coming from large industrialists, but this government is not letting them go. This government is very tough…the Prime Minister is very tough on the corruption issue,” he said.