Export-led growth imperative: Arvind Panagariya

Arvind Panagariya, the first Vice Chairman of the NITI Aayog, has stated that export-led growth is imperative for creation of good jobs in India. While the government is focusing on reducing India’s import bills by making the country self-reliant, Panagariya opined that “whole idea of turning back to import substitution turns the clock back (for India). It is on the back of trade liberalisation and very rapid export expansion during the 2000s onwards that the (Indian) economy really began to grow at this very rapid rate.”

 He also noted that while the economy grew at a robust rate of 7.5% in the last 5 years, it needs to grow at 8-10% in order to generate more jobs. He also advocated the need to focus on the medium and large firms, privatization of banks, resolving the NPA conundrum, creating Shenzhen-style Autonomous Employment Zones & having entrepreneur-friendly policies.