On Prime Minister Narendra Modi’s 75th birthday, Arvind Panagariya, Chairman of the 16th Finance Commission, joined NDTV Profit to reflect on India’s economic journey over the last 11 years. He praised the significant reforms but emphasized that the next big steps for India would involve securing beneficial trade pacts with the United States and the European Union.
Panagariya explained that while India has signed some free trade agreements, deals with the US and the EU would be “game-changers.” These agreements would remove trade barriers and allow for smoother movement of goods between these regions and India.
He compared the potential benefits of these deals to China’s position in the early 2000s, stating that India’s large workforce, both skilled and unskilled, could make it an attractive destination for multinational companies, just like China was in the 1990s and 2000s.
The economist also suggested that India could benefit from further reforms in labor and land policies, especially given the high cost of urban land for setting up factories.
Panagariya praised the reforms under Modi’s leadership, highlighting progress in reducing poverty across various social groups.
