Path to Prosperity: Achieving India's High-Income Economy Dream

Finance Commission Chairman Arvind Panagariya outlines India's path to becoming a high-income economy by achieving a 7.8% annual growth rate for 24 years. He emphasizes exploiting the demographic dividend, scaling private enterprises, reforming labor laws, and focusing on sustainable energy to reach a USD 9-10 trillion economy.

In a visionary address at IIT-Tirupati, Sixteenth Finance Commission Chairman Arvind Panagariya laid out the roadmap for India to transition into a high-income nation. A sustained annual growth rate of 7.8% over the next 24 years is essential, he emphasized, to multiply the current GNI per capita eightfold.

Citing India's resilience through past economic crises, Panagariya pointed to the country's young workforce and infrastructure achievements as catalysts for growth. He stressed the importance of reforming restrictive labor laws, enhancing manufacturing productivity, and scaling industries to facilitate employment.

On climate change, Panagariya argued for dual domestic goals: reducing urban pollution and embracing non-fossil fuels. With consistent commitment, he predicts India could become a USD 9-10 trillion economy within a decade, provided private enterprises grow and workforce absorption improves.

(With inputs from agencies.)