$10 trillion economy can be possible with consistent efforts: Arvind Panagariya

Tirupati: IIT Tirupati recently hosted an insightful lecture by Prof Arvind Panagariya, Chairman of the 16th Finance Commission of India, on the theme ‘India in the Global Economy: The Next Decade.’ The event was attended by eminent economists Prof Manoj Panda, Member of the 16th Finance Commission and former Director of the Institute of Economic Growth, New Delhi, and Prof KN Satyanarayana, Director of IIT Tirupati.

In his keynote address, Prof Panagariya offered a comprehensive analysis of India’s current economic landscape and outlined a roadmap toward achieving Viksit Bharat, a developed India by 2047. He noted that for India to move from a middle-income to a h igh-income economy, its gross national income (GNI) per capita would need to increase nearly eightfold from the current USD 2,540 (as of 2023). Achieving this transformation would require sustaining an average annual growth rate of 7.8 percent over the next 24 years.

Prof Panagariya identified three key drivers that could underpin India’s growth trajectory: rising per capita income, the demographic dividend, and the momentum of infrastructure development and policy reforms.

Addressing structural challenges, he pointed to the need for shifting workers from low-productivity micro-enterprises to more productive firms. He emphasised the importance of labour and land reforms and called for policy measures that facilitate enterprise growth and enhance workforce absorption in the private sector.

Responding to questions during an engaging Q&A session, Prof Panagariya acknowledged the slow pace of manufacturing growth and attributed it largely to restrictive labour laws. On climate change, he clarified that while India alone cannot solve the global crisis, it can still adopt a dual approach, addressing urban pollution and increasing reliance on non-fossil fuel energy sources, to ensure sustainable development and build resilience against climate-related challenges. He concluded his lecture on an optimistic note, projecting that if pursued with consistency and commitment, India could become a $9–10 trillion economy within the next decade.

Earlier, in his welcome address, Prof KN Satyanarayana reflected on the transformative journey of IIT Tirupati as a third generation IIT. He highlighted the institute’s focus on cutting-edge research and innovation, noting that one-third of its students are enrolled in PhD programmes and faculty members are currently engaged in over 200 research projects. He also underlined the institute’s vision of blending global outlook with local relevance.