India's Economy Shows Resilience: GDP Growth Surpasses Expectations

Arvind Panagariya, chairman of the 16th Finance Commission, hailed India's robust economic performance, noting upward revisions in GDP growth rates. Encouraged by improvements, Panagariya highlighted potential trade benefits and stressed the importance of maintaining elevated growth rates to achieve high-income country status by 2047.

Arvind Panagariya, chairman of the 16th Finance Commission, expressed optimism over India's economic performance, citing revised GDP growth figures as evidence of the country's robust economy. Speaking at the 49th Civil Accounts Day celebrations, Panagariya noted that GDP growth for the fiscal year 2022-23 was adjusted from 7 percent to 7.6 percent, while projections for 2023-24 saw an even steeper revision from 8.2 percent to 9.2 percent.

Panagariya emphasized the importance of these revisions, pointing out that the growth calculations are based on a significantly increased GDP base. "The base of the GDP has gone up. If it was the old base, probably that 6.5 percent would look more like 7 percent," he remarked, underscoring his encouragement from the latest figures.

While addressing challenges such as US tariffs under former President Donald Trump, Panagariya spoke of the potential for a beneficial trade arrangement between India and the US. He also highlighted opportunities in trade negotiations with the European Union and the United Kingdom. Furthermore, Panagariya stressed the need for India to maintain a 10.1 percent growth rate in dollar terms to achieve high-income status by 2047, targeting a per capita income of USD 14,000.

(With inputs from agencies.)