Indian economy on ‘upswing’; govt set to spend more along with pro-growth reforms: Panagariya

TIL Desk/Business/New Delhi/ India’s economy is on an “upswing” and the government’s plans for increased spending comes in the backdrop of pro-growth reforms, former Niti Aayog Vice Chairman Arvind Panagariya said on Tuesday even as he opined that it might take longer to become a USD 5 trillion economy due to the coronavirus pandemic-induced disruptions.

In an interview, the eminent economist described the government’s decision to privatise two public sector banks next fiscal as an “unprecedented” effort to “finally right a wrong done 50 years ago”. He was apparently referring to former Prime Minister Indira Gandhi’s move to nationalise banks.

Panagariya, who is currently a Professor of Economics at the Columbia University, said the country’s GDP growth in October-December 2020 quarter returned to a hair’s breadth above its level a year ago.

“At 0.4 per cent, the year-on-year growth in GDP may seem low but given the large negative growth during the preceding two quarters ((-)24.4 per cent during April-June and and (-)7.3 per cent during July-Sept), the quarter-on-quarter growth momentum is very strong,” he said.