India’s economy has recovered fast from the pandemic-induced crisis, says Arvind Panagariya. A professor of economics and the Jagdish Bhagwati Professor of Indian Political Economy at Columbia University, Panagariya was the first vice chairman of NITI Aayog. In an exclusive interaction with THE WEEK, he talks frankly about the Indian economy. Excerpts:
Q/What is the current state of the Indian economy and where is it headed?
A/The economy has recovered speedily, with India’s growth rate in 2021-22 almost sure to be the highest [among major economies], just as the IMF forecast of October 2021 had predicted. Provided that Covid-19 does not force significant lockdowns, we can count on growing 7-8 per cent a year in the coming decade. If we do a few more key reforms, we can do better.
Q/Do you feel that the economy is moving on the right path? Prices have been steadily rising and inflation has surged.
A/Currently, inflation is well within the assigned target range (2 to 6 per cent). I do not think that the RBI has to begin tightening the moment it sees inflation exceeding the mid-point of the target range. In a developing economy in recovery, I am comfortable with inflation being in the 5 to 6 per cent range.
Q/What kind of steps should be taken in the budget to revive the economy?
Continue reading your story on the app
Continue reading your story in the magazine
The New World Disorder
Just when World War I was ending, the Spanish Flu sickened the world. Now the order is reversed. The Ukraine war follows the pandemic.
Hardik Walks, BJP Gains
The Patidar leader could join the BJP or the AAP after quitting the Congress; both scenarios would benefit the BJP
Lessons Life Has Taught Me
Of life’s truths and turning points that make us who we are
Who killed Shruti Hill?
The Madhya Pradesh High Court recently acquitted a tribal ex-medical student in a murder case after he spent nearly 14 years in jail. However, who killed the woman is still a mystery
You end up making enemies. That's an anthologist's curse
INTERVIEW/Jeet Thayil, author, poet and poetry editor
Self-belief and teamwork powered the Indians to their maiden Thomas Cup win
THE PHILOSOPHER'S SONG
In his new album, singer-songwriter Prateek Kuhad ventures on an exploration of the dark corners of his mind
MODERN LOVE: MUMBAI Available on Amazon Prime Video
HAL’s light utility helicopter could be the perfect replacement for the ageing Cheetah and Chetak fleets. Experts say it will revolutionise India’s defence aviation capabilities
CARRIERS OF CULTURE
India is the “Country of Honour” at the 2022 Cannes Film Market. Six Indian films will be screened as part of it
Tom Cruise: MAN ON A MISSION
THE ACTOR STOPPED AT NOTHING TO MAKE M:1 7 AND 8 AND TOP GUN: MAVERICK. NOW HE'S FEELING THE PRESSURE.
HOW POLITICS POISONED THE CHURCH
THE EVANGELICAL MOVEMENT SPENT 40 YEARS AT WAR WITH SECULAR AMERICA. NOW IT'S AT WAR WITH ITSELF.
Desire for Face Time Revives Business Travel
Companies are reporting more trips, proving doomsayers from the pandemic's darkest days wrong
A dairy farming father's love for his family lives on in the tools that he left behind.
AIRBNB Allows Employees to Live and Work From Anywhere
Airbnb will allow its employees to live and work almost anywhere around the world, fully embracing a remote work policy to attract staff and ensure flexibility.
An Overview of Namibia's Agri Sector
In a recent report, the Namibia Agricultural Union outlined the state of that country’s agriculture sector, and how it has been affected by COVID-19 and other factors.
Left Behind By Long Covid
As the world pretends the pandemic is over, at least half a million children in the U.S. are struggling
Shanghai's Black Eye
Expats are ditching the city, jeopardizing efforts to turn it into a top financial hub in Asia
Critics call on Chinese government to ease lockdown regulations
a GOOD READ
James Read is a far cry from his villainous alter ego on DAYS.