India can push GDP growth rate to 9% in next 5 years, says Finance Commission chief Arvind Panagariya

India’s gross domestic product (GDP) growth rate can be pushed to 9% per annum in the next five years, and the same could be “sustained easily” for a couple of decades, said Arvind Panagriya, the chairman of the 16th Finance Commission.

The remarks come in the aftermath of India clocking an 8.4% GDP growth in the October-December period of the current fiscal, which was the fastest in the last one-and-a-half years.

“Certainly with a few more reforms in the next five years, we can realistically push it to close to 9%, certainly somewhere at 8-9% and that can be sustained easily for a couple of decades,” Panagariya said, while speaking at the Times Now Summit on Wednesday, March 27.

Panagariya, who has also served as the vice chairman of the Centre’s topmost think-tank Niti Aayog, credited Prime Minister Narendra Modi for creating a conducive environment for growth. The policies enacted by the government has helped India to emerge as a business-friendly place, he said.

Notably, the Reserve Bank of India (RBI) sees India clocking a 7.6% growth in the year-ending March 31, 2024. The central bank estimates the economy to grow at 7% in the next financial year 2024-25.

Fitch Ratings, on March 14, made an upward revision in growth projection for India. The ratings agency sees the GDP growing by 7.8% in FY24 and by 7% in FY25. Meanwhile, S&P Global estimates the Indian economy to grow by 7.6% in FY24 and 6.8% in FY25.