A Happy Exit

Arvind Panagariya set course for a $15 trillion economy dream

- Soumik Dey

When Arvind Panagariya—the Jagdish Bhagwati Professor of Indian Political Economy at the School of International and Public Affairs at Columbia University, New York— walks into the classroom after a long gap, he will probably be wearing a broad smile. For he has now seen the other side as well, in both government and politics. He had been away from the classroom for two and a half years, as vice chairman of the National Institution for Transforming India (NITI) Aayog, which did not have the financial powers of its predecessor, the Planning Commission.

Panagariya spoke of a dream—India could be a $15 trillion economy if the economy grew at a rate of 8 per cent for seven years. That dream has to wait, but he has enough material for writing a sequel to his book, India: The Emerging Giant. “I have asked them not to give me any classes in the first week after returning to New York. I would like to devote some of this time for a sequel to my book on India,” he told THE WEEK.

The supply-side political economist was a strong critic of the demonetisation and had sought a higher, 02.5 lakh, limit for cash deposits. Apparently, the finance ministry overruled him. Opposing farm loan waivers, Panagariya said politicians must understand the economic significance of the promises they make to people.