Skip to content
Search

Latest Stories

Export-led growth very critical for good jobs in India: Arvind Panagariya

INDIA'S economy needs to grow at 8 - 10 per cent annually if good jobs have to be provided to those joining the workforce, eminent economist Arvind Panagariya has said, emphasising that export-led growth is very critical for the creation of good jobs in the country.

Panagariya, who served as the first vice chairman of the NITI Aayog from January 2015 to August 2017, underscored that for trade to grow, the country has to be open.


As tariffs are going up on many different items, he said the "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."

"We have to return to becoming an export-led growth country," Panagariya, delivering the keynote address at a panel discussion on 'Economic Priorities for the New Government' of prime minister Narendra Modi, said Monday (24).

Panagariya, director at the Raj Center on Indian Economic Policies at Columbia University, said that the Indian economy grew at a "very impressive" rate of about 7 per cent plus during the 15-year period from 2003-04 onwards.

In the last five years of Modi's first term as prime minister, the growth rate was a robust 7.5 per cent.

"But we need to get to 8-10 per cent if good jobs are going to be provided. The export-led growth is also very critical for good jobs,” he added.

He stressed that there is not a single country which has grown on a sustained basis at rates of 8-10 per cent for 2-3 decades without very rapid growth in trade.

He further emphasised that by increasing exports, imports will also automatically grow "because the whole point of exporting is so that you will import in return."

The panel discussion was organised by the Consulate General of India in New York in partnership with the Deepak and Neera Raj Centre for Indian Economic Policies and the US-India Strategic Partnership Forum (USISPF).

Panagariya added that he has always maintained that India's problem is not unemployment but low wages.

"The debate hovers around the unemployment rate - even if you take the latest unemployment rate which is seen as the highest ever in 45 years at 6 per cent. Unemployment is not the huge problem in India, low wages is,” he said.

He elaborated that a lot of employment in India is self-employment. "So about 44 per cent in agriculture and then of the remaining almost 75 per cent of the employment is in these companies which have five workers or less. They are hardly companies. What that translates into is a very low level of productivity, very low level of wages. These are what are called the mom-and-pop enterprises,” he said.

He asserted that unfortunately in India, there is a huge preoccupation with micro and small enterprises and there are hardly any medium and large firms.

"We need to have medium and large firms. This is where the whole link to exports is very important,” he said adding that it is the medium and large firms that give boost to export activity and compete with the best in the world.

Going forward, India also needs cleaning up of the Non-Performing Assets and in the next five years, privatisation of banks has to be on the government's agenda.

Panagariya also made a strong case for creating Shenzhen-style Autonomous Employment Zones that create zones of 500 square kilometres or more along the coast that are characterized by a highly entrepreneur-friendly regime with respect to land, labour and international trade to boost economic growth in the years to come.

(PTI)

More For You

Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less
Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

The IT service firm said its revenue would either stay flat or grow by up to three per cent

Getty Images

Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

INDIAN tech giant Infosys forecast muted annual revenue growth last Thursday (17) in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to three per cent in the fiscal year through March 2026 on a constant currency basis. The sales forecast was lower than the 4.2 per cent constantcurrency revenue growth Infosys recorded in the previous financial year.

Keep ReadingShow less
UK retailers

For many retailers, this has meant closing stores, cutting jobs, and focusing on more profitable business segments

Getty

6 UK retailers facing major store closures in 2025

In 2025, several UK retailers are experiencing major store closures as they struggle to navigate financial pressures, rising operational costs, and changing consumer behaviours. These closures reflect the ongoing challenges faced by traditional brick-and-mortar stores in an increasingly digital world. While some closures are part of larger restructuring efforts, others have been driven by financial instability or market shifts that have forced retailers to rethink their business strategies. Let’s take a closer look at six major UK retailers affected by these trends.

1. Morrisons

Morrisons, one of the UK's largest supermarket chains, is undergoing a significant restructuring in 2025. The company has announced the closure of several in-store services, including 52 cafés, 18 Market Kitchens, 17 convenience stores, and various other departments. This move is part of a larger strategy to streamline operations and address rising costs. Morrisons’ parent company, CD&R, has been focusing on reducing overheads and refocusing on core services.

Keep ReadingShow less
Starmer Trump

The UK is seeking an agreement with the US to remove Trump’s 10 per cent general tariff on goods and the 25 per cent tariff on steel and cars.

Getty Images

Industry warns Starmer: Strike deal with US or face factory job losses

FACTORY owners could begin laying off workers within months unless prime minister Keir Starmer secures a trade agreement with US president Donald Trump, MPs have been told.

Make UK, an industry lobby group, told the business and trade select committee that tariffs on British exports were reducing demand for UK-manufactured goods.

Keep ReadingShow less