Indian economy is quite robust: Arvind Panagariya

The ongoing crisis in West Asia continues to impact the Indian economy, marked by a recent two-rupee hike in CNG prices, totaling a six-rupee increase within two weeks. The economic strain is further highlighted by declining foreign exchange reserves, which have dropped by nearly forty billion dollars since February, and surging fertiliser subsidies expected to exceed three lakh crores. Despite these external shocks, Arvind Panagariya, Chairman of the sixteenth Finance Commission, asserts that the domestic economy remains fundamentally robust, citing a steady gross foreign direct investment of ninety-four billion dollars for the recent fiscal year and consistent growth averaging over seven percent in the past three years. While acknowledging the need for future judicial reforms and the reduction of regulatory hurdles, the assessment rejects alarmist comparisons to past economic fragilities. Growth projections indicate a potential dip to six or six and a half percent depending on the duration of the global crisis. Additionally, the discussion addresses the proliferation of election freebies, emphasising the need for productive public resource management.