India's Economic Potential: On Track for a $7 Trillion Breakthrough by 2030

India's economy is likely to exceed $7 trillion by 2030, with potential to reach $9 trillion through reforms and aggressive growth, claims Arvind Panagariya. He stresses the importance of reforms and strategic investments to overcome structural challenges and enhance economic growth.

India's economic landscape is poised for a substantial leap, with projections indicating a crossing of the $7 trillion threshold by 2030. This optimistic outlook was shared by Arvind Panagariya, Chairman of the 16th Finance Commission, at the India Economic Conclave organized by Times Network.

Panagariya asserted that with the implementation of outstanding reforms, the country's economy could escalate to an impressive $9 trillion. He emphasized that reforms are integral to achieving higher growth rates, potentially surpassing current expectations and reaching between 11% to 12% growth, thereby placing the economy at $9 to $10 trillion by the early 2030s.

The economist also pointed to structural hurdles, such as the elevated costs of urban land, as factors impeding commercial rental housing development. Regarding investments, Panagariya advocated for equities as the more lucrative long-term option over gold and real estate. While promoting a strategic approach, he advised cautious evaluation of real estate investments, stressing dependency on local market conditions and urbanization trends.

(With inputs from agencies.)