In an exclusive interview with NDTV, Arvind Panagariya, the Chairperson of the Finance Commission, provided a clear roadmap for India to become a developed nation by 2047. Panagariya emphasized the importance of a sustained growth rate of 7.6% to achieve this ambitious goal, citing projections of an 8% GDP growth for 2024-25 as a positive indicator of India’s economic trajectory.
Panagariya took a historical perspective, recalling how Prime Minister Narendra Modi inherited a fragile economy from the previous Congress-led UPA government. Despite these challenges, significant strides have been made, though Panagariya stressed that more work remains to be done for India to realize its “Viksit Bharat” vision.
The former vice-chairman of NITI Aayog also pointed to the economic and administrative weaknesses that Modi inherited, particularly the lack of progress on infrastructure projects due to slow environmental clearances. Panagariya noted that clearing these bottlenecks was crucial before tackling more difficult reforms such as the abolition of red tape, the Goods and Services Tax (GST), and the introduction of the bankruptcy code.
One of the key areas Panagariya highlighted was infrastructure development, with particular attention to railways, civil aviation, and the growing importance of digital payment systems. He expressed confidence that India can continue to grow rapidly and overcome its current challenges, citing the 10.2% GDP growth rate in dollar terms from 2003-4 to 2022-23. He also pointed out that even after adjusting for inflation, India’s growth in real dollar terms stands at 7.9% over this period.
Panagariya also weighed in on the issue of “One Nation, One Election,” which he believes could significantly speed up reforms. He explained that repeated elections every few months hinder the government’s ability to implement major policy changes, as reforms become contentious issues during electoral periods. Panagariya argued that consolidating elections would allow the government to focus on governance and push through critical reforms without the distractions of constant campaigning.
Furthermore, Panagariya highlighted the long-term potential of India’s demographic dividend and its growing role in the global economy. He acknowledged that challenges such as unemployment, inflation, and income inequality remain, but he remains optimistic about India’s future prospects, especially if the country continues on its current growth trajectory and accelerates necessary reforms.
In summary, Panagariya’s message was clear: with the right policies and sustained efforts, India can achieve its goal of becoming a developed nation by 2047. The path to success, however, will require overcoming structural challenges, improving governance, and ensuring that reforms are not derailed by frequent elections or political gridlock.
India’s economic journey is far from over, but with the right leadership and vision, the country is poised to become a major global player in the coming decades. Panagariya’s optimism underscores the potential for growth, provided the country remains committed to transformative reforms and sustainable development.
Looking ahead, India’s focus will need to shift toward ensuring that growth benefits all sectors of society, creating an inclusive and prosperous future for its citizens.