India's economy is on an "upswing" but it might take longer to become a USD 5 trillion economy due to pandemic disruptions:Panagariya
Published On: Tuesday, March 2, 2021 | By: Team KnowMyStock
India's economy is on an "upswing" and the government's plans for increased spending comes in the backdrop of pro-growth reforms, former Niti Aayog Vice-Chairman Arvind Panagariya said today(2nd March 2021) even as he opined that it might take longer to become a USD 5 trillion economy due to the coronavirus pandemic-induced disruptions. Panagariya, who is currently a Professor of Economics at the Columbia University, said the country's GDP growth in October-December 2020 quarter returned to a hair's breadth above its level a year ago. "At 0.4 percent, the year-on-year growth in GDP may seem low but given the large negative growth during the preceding two quarters ((-)24.4 percent during April-June and (-)7.3 percent during July-Sept), the quarter-on-quarter growth momentum is very strong," he said.
According to him, there are signs that the government is clearing past arrears at an accelerated pace and has also provided for doubling of government expenditure in the current quarter over the same quarter last year.
"These facts would help boost demand and give further impetus to growth at a time when the economy is on the upswing. So the news on the growth front is very encouraging," he said.
On agitation by farmers against the new farm laws, Panagariya pointed out that discussions on APMC reforms are now 20 years old and every central government since Prime Minister A B Vajpayee has promoted the reforms.
Further, he said that the Parliamentary Standing Committee on Agriculture called for the reforms as recently as December 2019 and nearly all farm organisations had also called for these reforms at one time or the other.
"In the end, the solution will have to be worked out through discussions and negotiations," Panagariya opined.
Tags: Indian conomy new farm rules
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