homeeconomy NewsEconomist Arvind Panagariya asserts India's economic landing soft, urges strong manufacturing growth
Economist Arvind Panagariya asserts India's economic landing soft, urges strong manufacturing growth
In an exclusive interview with CNBC-TV18, Panagariya commented, "I've been hearing about this recession ever since the COVID sort of ended. And, the speculation was always and each time I have come to India, I hear about this recession happening, but it hasn't happened."
Former Niti Aayog vice chairman and renowned economist Arvind Panagariya on Tuesday (December 19) debunked speculations of an imminent recession in India.
Panagariya noted that despite persistent talks of a recession post-COVID, the landing has already been soft, particularly in the United States where the economy continues to show unexpected resilience.
In an exclusive interview with CNBC-TV18, Panagariya commented, "I've been hearing about this recession ever since the COVID sort of ended. And, the speculation was always and each time I have come to India, I hear about this recession happening, but it hasn't happened."
He emphasized that the US economy, particularly in terms of job numbers, has been performing well, with over 100,000 jobs consistently being added each month.
Addressing India's economic growth, Panagariya remarked, "First, to claim some credit, the growth rate has been stronger than expected by some. I had been saying it is going to be higher than 7%."
He expressed confidence in India's growth trajectory, especially if the country maintains economic stability and aims to secure a larger share of the global economy.
Panagariya stressed the need for robust manufacturing growth in India, citing successful models of countries like South Korea, Taiwan, China, and Singapore.
He asserted, "What India really needs is for overall manufacturing, as a proportion of the GDP, to grow and grow rapidly, we cannot grow with this 5-6% kind of manufacturing growth, we need 12-15% manufacturing growth."
The economist highlighted concerns about protectionist measures, stating, "Protection when we impose tariffs, that actually has a tendency to stay because it generates revenue."
He emphasized the importance of implementing comprehensive reforms to foster a conducive environment for accelerated manufacturing growth in India.
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