 "Arvind Panagariya")
After the World Bank raised India’s ranking on ‘Ease of doing business’, NITI Aayog vice-chairman Arvind Panagariya says rating agencies should take a clue and upgrade the country’s ranking from the lowest investment grade.
Speaking here on Friday, he also said he did not agree with various agencies pegging the country's growth at below eight per cent for 2015-16.
“Rating agencies often follow; they don't lead. There is a huge jump in India's ranking in ease of doing business. It is very positive. The data on foreign investment in the first half is also very encouraging. Several companies are investing in India, including Foxconn," said Panagariya.
According to a recent World Bank report, India's global ranking in ease of doing business had improved by notches to 130 of 189 countries.
On economic growth, Panagariya said: “I stand by my (earlier) statement that we will cross eight per cent economic growth this fiscal."
In the first quarter of the financial year (April-June), the growth rate was seven per cent, down from 7.5 per cent in the preceding three months, mainly due to deceleration in the farm, services and manufacturing sectors. It was, however, 6.7 per cent in the corresponding quarter a year before.
Said Panagariya, “The picture will be clearer when we get the second quarter GDP (gross domestic product) data by the end of November. Investments are up during the first half of this fiscal, which reflects buoyancy in the economy....The numbers are even more than that of China”
The finance ministry in its Economic Survey in February had set a growth target of 8.1-8.5 per cent for 2015-16. However, the Reserve Bank in its monetary policy review last month had lowered the GDP growth forecast to 7.4 per cent, from its earlier estimate of 7.6 per cent.
The economy grew 7.3 per cent in 2014-15, compared to advance estimates of 7.4 per cent from the Central Statistics Office.
On mid-term review of the 12th five-year Plan (2012-17), Panagariya said, "We have almost done it and it could be tabled before the Governing Council." The Aayog, he clarified, was not working on the 13th Plan (2017-22).
Innovative projects panel to meet soon
A committee under the chairmanship of Arvind Panagariya, vice-chairman of the NITI Aayog, instituted to approve "unique and innovative projects" entailing an investment of over Rs 2,000 crore, either through foreign direct investment or domestic investment, is to meet soon. The panel also has the economic affairs secretary, the secretary for industrial policy and promotion, former vigilance commissioner P Shanker, former cabinet secretary K M Chandrasekhar and the secretary of the relevant department or ministry. It was constituted recently.
