“ Maybe the corpses move ”: Arvind Panagariya on the “ dead economy ” of Trump, calls for the restart of Crisis India in 1991
India is not a corpse, and Donald Trump should know better, said the president of the finance committee Arvind Panagariya, rejecting the “dead economy” of the American president and pointing towards the growth and the export potential of India. “Maybe the corpses are moving,” he said.
Speaking on Friday at the Summit BT India @ 100, Panagariya said that India’s growth trajectory contradicts Trump’s rhetoric. “India is an open economy. You do not grow at 7% more if you are dead. In terms of a dollar, we go even faster. ”
He described the current global trade environment as a “moment of 1991” for India, supposedly in crisis and opportunities to an equal measure. “Trump’s 50% prices are a problem, but they force us to look inward and recalibrate. If the American market closes, we have to rotate.”
Panagariya has urged the center to accelerate a free trade agreement with the European Union, arguing that India can remove competitors like Vietnam. “We face high American prices, but at lower rates in Europe. Our exports can change, move Vietnamese goods. The reason for profit is strong. “
He pointed out that exports of post-comfortable goods from 19 billions to 25 billions of dollars by 2022 as proof of the potential of India. “If we put our house in order, nothing can stop our growth. There is a considerable place for acceleration. “
Regarding domestic policy, Panagariya called for delays in the implementation of labor reforms. “The four labor codes adopted in 2019-2020 were not informed. No parliamentary action is necessary. There is no better time now. ”
He also challenged political inertia at the state level on the use of land. “Urbanization does not only concern people living in cities – it is a question of building cities that allow business. The land is underused due to obsolete zoning and conversion rules. ”
States like Telangana and Uttar Pradesh, he said, have made an encouraging debut by reducing customs clearance. “Others should follow. The earth is difficult to acquire and the FSSAI rules still suffocate the movement. ”
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Panagariya said the regulatory overload continues to strangle exports. “We may be the only country where exports are faced with more paperwork than imports. It must change. “
Despite the increase in world protectionism, Panagariya remained confident: “We have overcome larger crises. With good policy and good entrepreneurial freedom, the history of India’s growth is far from over. ”
