Latest news with #ArvindPanagariya
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Business Standard
4 days ago
- Business
- Business Standard
India-US trade deal will be a game changer for investors: Arvind Panagariya
The proposed trade agreement between India and the United States could be a major breakthrough for India's investment climate, said Arvind Panagariya, chairman of the 16th Finance Commission. The deal, currently under negotiation, is expected to significantly liberalise India's trade regime and enhance the country's attractiveness for global investors, he said. 'This will be a big shot in the arm,' Panagariya stated during an interaction hosted at the Consulate General of India in New York this week. Agreement with EU likely to follow US deal Panagariya expressed optimism that the India-EU trade agreement would follow closely on the heels of the US deal. 'Once the India-US trade deal happens, the one with the European Union will also fall into place conveniently,' he said. 'These are the two largest markets. For any future investor, having open access to both will make India an extremely attractive destination.' The economist emphasised that reduced trade friction with the US and the EU would be a game changer, significantly lowering barriers for foreign companies looking to invest in or trade with India. Tariff cuts and liberalisation on the cards Regarding tariffs, Panagariya noted that the agreement would likely involve India lowering some of its duties. 'Potentially, a lot of good can come out of it. India will be reducing its tariffs as part of the process, which in itself is a tremendous opportunity,' he said. Panagariya said the most significant outcome of the trade deal would be domestic liberalisation. Improved access to the US market over competing nations would also be a major advantage. Trump administration signals deal is close US President Donald Trump has repeatedly stated that a trade agreement with India is imminent. As recently as last week, he remarked, 'We're very close to a deal with India, where they open it up.' He has reportedly set August 1 as a deadline for several countries, including India, to finalise trade agreements or face increased tariffs. Trade figures and future targets According to the latest figures, total goods trade between the US and India stood at $129.2 billion in 2024. US goods exports to India reached $41.8 billion, marking a rise of 3.4 per cent ($1.4 billion) from 2023. Meanwhile, goods imports from India totalled $87.4 billion, up 4.5 per cent ($3.7 billion) from the previous year. The resulting trade deficit stood at $45.7 billion. India and the US have also announced a new ambition, dubbed 'Mission 500,' which aims to more than double the bilateral trade to $500 billion by 2030. (With inputs from PTI, agencies)
Time of India
4 days ago
- Business
- Time of India
India-US trade agreement will be big shot in the arm: Arvind Panagariya
New York, The proposed India-US trade agreement will be a big shot in the arm and make India a very attractive location for investors and result in a lot of liberalisation by the country, Chairman of the 16th Finance Commission Arvind Panagariya has said. "A lot of the current things that are underway are very exciting," Panagariya said during an interaction hosted at the Consulate General of India in New York this week. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Data Science Operations Management Data Science MCA others Finance Management Product Management Others healthcare Digital Marketing MBA PGDM CXO Public Policy Degree Design Thinking Healthcare Technology Project Management Data Analytics Leadership Cybersecurity Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details "In particular, I want to mention the US-India trade agreement that is being negotiated. Also, the India-European Union agreement," the eminent economist said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo He said that the India-US trade agreement will be a "big shot in the arm". Once the India-US trade deal happens, the one with the European Union will also happen and "that door will open very conveniently," he said. Live Events With these two trade deals, "India will have an open market with the European Union, with the United States. These are the two largest markets. For any future investor, that makes India a very attractive location because effectively, the friction that is there on the border will melt away, and that is going to be an absolute game changer," Panagariya said. In response to a question by PTI on the India-US trade deal and tariffs, Panagariya said that "as far India is concerned, potentially, I see a lot of good might come out of it, because when the agreement has to be signed with the United States, India will also be lowering its tariffs." "This is a tremendous opportunity for India, and it is very seriously negotiating the agreement with the United States. So I'm sort of hoping to hear the good news," he said. "The most important thing is that this will result in a lot of liberalisation by India itself, and that, I think, is a very large part of the story. Of course, better access to the US market relative to its other competitors is a big plus also," Panagariya said. Panagariya, an eminent Columbia University professor and former Vice Chairman of NITI Aayog , also noted that from President Donald Trump to Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent have voiced optimism that an India-US trade agreement is almost imminent. Trump has stated on various occasions that the trade deal with India will happen soon, commenting as recently as last week that "We're very close to a deal with India, where they open it up." Trump has set 1 August as the deadline for several countries, including India, to sign a trade deal or face steep tariffs. Last month, Lutnick had said that one should expect a trade deal between India and the US in the not-too-distant future and that he is "very optimistic." The US' total goods trade with India is estimated at USD 129.2 billion in 2024. US goods exports to India in 2024 were USD 41.8 billion, up 3.4 per cent (USD 1.4 billion) from 2023. US goods imports from India totalled USD 87.4 billion in 2024, up 4.5 per cent (USD 3.7 billion) from 2023. The US goods trade deficit with India was USD 45.7 billion in 2024. Prime Minister Narendra Modi and President Trump have set a new goal for bilateral trade, 'Mission 500', aiming to more than double total bilateral trade to USD 500 billion by 2030. Negotiations between India and the US are underway to iron out pending issues for the trade deal. Commerce Minister Piyush Goyal reportedly said in London that Delhi is making "fantastic progress" in trade talks with Washington. Prime Minister Modi has also said that India is working on finalising a "mutually beneficial" trade agreement with the EU by the end of this year. Panagariya also elaborated on the 'Viksit Bharat' vision for India that envisages the country as a developed economy by 2047. He noted that in real dollar terms, India's GDP during 2003-2017 grew at 10 per cent and at about 7.8 per cent annually up till 2024. "If we can continue to do even what we have done actually over the last about 20 plus years, starting in 2003, we can get there", being able to grow at about 7.8 per cent. And there are reasons actually that we can on the whole probably do even better in the next 23-24 years," he said. India's current per-capita GNI (Gross National Income) in 2024-25 is USD 2,740, while the World Bank threshold per-capita GNI to achieve high-income country status is USD 13,995. The annual compound growth in constant dollars in per-capita GNI required to cross the World Bank threshold from this level is 7.3 per cent. With the population growth rate of 0.6 per cent, this per-capita GNI growth requires a GNI growth rate of 7.9 per cent, he said. India, the fifth largest economy in the world, has a GDP of USD 3.91 trillion in 2024-25, behind the fourth largest economy, Japan, which has a GDP of 4.19 trillion and Germany, the third largest with a GDP of USD 4.66 trillion. With India's growth in current dollars at 8-10 per cent, Panagariya said it is almost certain that India will surpass the GDPs of both Japan and Germany within three years and therefore, by the end of 2027, will become the third largest economy. Highlighting factors that put India in a favourable position to achieve the 2047 goal, Panagariya pointed to the very large gap between India's per-capita GDP (USD 2,780) as compared to South Korea (USD 33,120), Singapore (USD 84,730), the US (USD 82,770) and Germany (USD 53,340). This gap indicates that there is a large scope for catch-up for India, he said. In addition to this, India's large population will lead to scale economies in the provision of public goods, especially digital infrastructure and its young population will lead to a high worker/population ratio and high savings rate. Other key factors include a great momentum in both physical and digital infrastructure development, with road, railway and civil aviation infrastructure being built at breakneck speed and India's digital public infrastructure digitising public and private transactions faster than in most countries, he said. Noting the considerable scope for economic reforms, Panagariya referred to the implementation of new labour codes and much greater awareness among the states of the importance of urbanisation. On the challenges in the journey ahead, Panagariya emphasised that the transition out of the rural agricultural economy into industrial and services is the biggest challenge for India. "Therefore, the creation of well-paid jobs in industry and services is the biggest challenge," he said. PTI
Time of India
6 days ago
- Business
- Time of India
India-US economic ties hit tariff roadblock? Panagariya, Ex- NITI Aayog VC sheds light on trade deal
India and Emerging Asia Economics at the Center for Strategic and International Studies (CSIS) for a public event featuring Dr. Arvind Panagariya, Chairman of the 16th Finance Commission of India, on July 23, 2025, at 11:00 am ET. As India continues its rapid economic ascent, its evolving relationship with the United States holds new opportunities and strategic significance. Dr. Panagariya will explore India's economic trajectory and its implications for bilateral cooperation, with a special focus on the expanding role of Indian states and cities as engines of growth. Dr. Panagariya brings deep expertise to this conversation, having served as Vice Chairman of NITI Aayog and India's G20 Sherpa. A renowned economist, academic, and author, he has held senior positions at the Asian Development Bank, the University of Maryland, and global institutions such as the World Bank and IMF. He is a recipient of India's prestigious Padma Bhushan award and the author of influential works including 'India: The Emerging Giant' and 'Why Growth Matters.' Show more Show less
The Print
7 days ago
- Business
- The Print
Finance Commission needs to focus on strengthening local bodies, says Raghuram Rajan
Emphasising on the need for more decentralisation in a large country like India which is overly governed from the Centre and state capitals, he said,'I think the 16th Finance Commission should focus on making that happen through carrots and potentially sticks.' Recently, 16th Finance Commission Chairman Arvind Panagariya had said that a majority of states have recommended that the Centre increase their share in tax revenue distribution to 50 per cent. Observing that previous finance commissions devolved more funds to states, Rajan told PTI Videos, 'Now we need to focus also on devolving funds from states to municipalities to panchayats, etc. That third level of devolution is what we need far more of.' Citing examples of China and the US, Rajan pointed out that the number of local government employees in these countries is significantly higher than the share of local government employees in India. New Delhi, Jul 23 (PTI) The 16th Finance Commission should focus on devolving more funds to local bodies, municipalities and panchayats to enable them effectively deal with problems facing the people, former RBI Governor Raghuram Rajan has said. Currently, states receive 41 per cent of the divisible tax pool, while the remaining 59 per cent is retained by the Centre. The Finance Commission, mandated by the Indian Constitution, plays a crucial role in strengthening the financial position of municipalities (urban local bodies). It reviews the financial position of municipalities and makes recommendations to state governments on various aspects of fiscal devolution. Asked what is his assessment of Production Linked Incentive (PLI) scheme, Rajan said,'I do not think we have any strong public data to evaluate the PLI scheme.' He noted that as with all government programmes, there is some success as India is exporting more cell phones now. 'But has it (PLI scheme) done enough to move the needle on jobs in a big way? I think at least…the job numbers you see in the periodic labour force surveys (PLFS) suggest not yet,' Rajan, currently a professor of finance at Chicago Booth said. In 2021, the PLI scheme for 14 key sectors including telecom, electronics, pharma, textiles and auto was announced with an outlay of Rs 1.97 lakh crore to enhance India's manufacturing capabilities and exports. Responding to a question on China's rare earth material exports curb to India and other countries, Rajan said,'We need a strategic view of different industries and ask where we can be held up by bottlenecks, and where it is relatively easy for us to undertake production to elevate those bottlenecks.' He noted that sometimes some sort of antagonistic power can limit 'our access to chips, but it is very, very costly for us to have an entire chip manufacturing sector.' 'So we have to find alternative ways of getting those chips…for example through creating domestic buffers of key chips,' he said. According to Rajan, in some areas, India has the opportunity to produce more rare earth metals.'For example, I understand there are reserves of some of these rare earth materials in Kashmir. Could it be a win-win situation to create more employment in Kashmir which is really very important both from an economic perspective and also from a geo-strategic perspective.' PTI BKS ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
02-07-2025
- Business
- Time of India
Himanta Biswa Sarma meets Chairman of 16th Finance Commission; discusses issues related to devolution of funds
Guwahati: Assam Chief Minister Himanta Biswa Sarma on Wednesday met the Chairman of the 16th Finance Commission , Dr. Arvind Panagariya and discussed a gamut of issues pertaining to devolution of funds given the state's unique aspects. In course of the 40-minute meeting at Bhawan Annexe, 1 Tolstoy Marg here, Chief Minister Sarma highlighted Assam's unique challenges ranging from its diverse geography to the impact of climate change , its strategic position vis-a-vis proximity to international borders coupled with demographic shifts. Emphasising that Assam's unique challenges demand tailored solutions, the Chief Minister underscored the need for bridging regional disparities as the way forward towards a Vikshit Bharat. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The Chief Minister pointed out that despite the impediment, the State has been able to achieve higher capital expenditure and put up remarkable performance in vital sectors, including health, education, drinking water, infrastructure, local governance, disaster mitigation, power etc. Sarma said the present government is wholly committed to ensure that Assam emerges as a net contributor in India's quest to become the third largest economy. Towards this end, insightful submissions were made that could help to give added impetus to Cooperative Federalism , address vertical and horizontal challenges, and strike a fine balance between equity and efficiency. Live Events The meeting was attended by Principal Secretary to the Chief Minister, Dwivedi, Commissioner and Secretary, Finance Department, Govt. of Assam, Jayant Narlikar and other officials. Later taking to X (formerly Twitter) the Chief Minister wrote, "It is always insightful to meet Shri @APanagariya Ji, the Chairman of the 16th Finance Commission. We discussed aspects unique to Assam with regards to devolution of funds." It may be recalled that Chief Minister Dr. Sarma in course of a meeting with the Chairman and members of the 16th Finance Commission during their visit to Assam on September 26 last year had urged the commission to increase Assam's share within the framework of horizontal devolution and to accord the North East Region comprising eight states as a collective block by allocating 10% of Central tax revenues. "To realise Prime Minister Narendra Modi's vision of making the Northeast a growth engine, greater fund devolution is crucial," the Chief Minister quipped. Constituted on December 31, 2023, with Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog, as its chairman, the 16th Finance Commission is mandated to submit its recommendations by October 31, 2025, for the award period of five years commencing from April 1 2026.
