Vastavam web: India is likely to clock a 7.5 per cent economic growth in the current fiscal, NITI Aayog Vice Chairman Arvind Panagariya has said, even as he acknowledged that creation of “good jobs” in the country remains a big challenge.”For the current fiscal year of 2017-18, I expect that we will be back to at least 7.5 per cent and as you get towards the last quarter of the year probably we will begin to touch eight per cent. But the average for the year would be about 7.5 per cent,” Panagariya told in an interview here.Panagariya, who had presented India’s ‘Voluntary National Review Report on Implementation of Sustainable Development Goals’ at the UN High Level Political Forum on Sustainable Development 2017 last week, however, said that job creation in the country, especially at the lower, semi-skilled level, “truly is the biggest challenge, probably bigger than growing at eight per cent.”
Panagariya said he does not agree with the classification in some sections of the media that India s economic growth is a jobless growth.”I personally don t believe that is true. We cannot be growing at 7.5 per cent and then you say that jobs are not growing, investments are not growing at a satisfactory pace.
All of that growth could not have come from productivity alone,” he said. Panagariya, however, acknowledged that there is not enough creation of good jobs that pay good wages. He noted that China, which is the major exporter of all these products, is experiencing very high wages and is already quitting some of the space in these labour intensive sectors.
With the Indian government implementing the big ticket reform of the Goods and Services Tax, Panagariya said while there could be some teething troubles as the country embraces the ambitious financial reform, he does not see it significantly impacting economic growth going forward.”On some sort of an immediate negative impact (of the GST on economic growth), personally I don t think there will be a kind of negative impact that you will be able to actually measure separately,” he said, adding that there will undoubtedly be teething problems initially because even if the country is small, when an entirely new system is instituted, it takes time for people to learn.
“I think things should settle down in a relatively short period. I would say on the whole, we should see within a year s time positive results should be coming out and in the longer run, it should enhance efficiency,” he said on GST s impact going forward