Indian economy can still grow 8% this fiscal: NITI Aayog VC Arvind Panagariya

NEW DELHI: NITI Aayog vice chairman Arvind Panagariya on Friday expressed hope that the country’s economic growth rate will touch 8% this fiscal year. “I remain optimistic that first quarter GDP numbers will be revised and by the time we reach the fourth quarter economy will touch 8%,” he said but, cautioned that government should take action on the rural economy.

Panagariya’s comments come on the back of 7.4% GDP growth in the second quarter ended September, up from 7% in the first quarter, buoyed by a spike in industrial activity and higher investment demand, and fuelling perceptions that a sustainable economic revival is finally under way. In the first half of the fiscal, the country’s economy expanded 7.2%. Speaking at NITI Aayog's panel discussion on innovation and entrepreneurship, Panagariya also said the policy think tank is in the process of setting up a mission secretariat for the Atal Innovation Mission (AIM) and a highlevel committee to decide on the mission’s work.

Finance minister Arun Jaitley had announced AIM in Union Budget 2015-16 and allocated .`150 crore to it. Admitting that the government has a critical role to play in enhancing R&D expenditure in the country, Panagariya said it would be difficult for the government to do so in the current fiscal scenario. “Private sector will have to remain at the forefront of AIM and government will work as a facilitator,” he said.