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Panagariya Says India Weathered Global Shocks With Resilient Growth
Arvind Panagariya said India’s economy has handled problems around the world better than he expected.
He believes India can keep growing by 7–8% each year over the medium term.
He said prices have stayed under control while economic activity has continued.
Manufacturing, which means making goods, has grown by more than 10% in each of the last three financial years.
Finance Minister Nirmala Sitharaman also said India’s economy grew strongly.
She reported 7.8% growth in the first quarter of FY2026-27.
Inflation was about 4.8% in August, and the current account deficit was 0.5% of GDP during the quarter.
Panagariya said some industries may be affected by global problems while others can help support the wider economy.
Arvind Panagariya said India handled global economic uncertainty better than expected, with growth continuing and inflation stable.
Panagariya expects the Indian economy to grow 7–8% annually over the medium term.
He said manufacturing grew by more than 10% in each of the past three financial years.
Finance Minister Nirmala Sitharaman said real GDP grew 7.8% in the first quarter of FY2026-27.
Sitharaman reported August consumer inflation of about 4.8% and a quarterly current account deficit equal to 0.5% of GDP.
- Who
- Arvind Panagariya and Finance Minister Nirmala Sitharaman.
- What
- Panagariya said India had handled global economic shocks effectively and forecast medium-term annual growth of 7–8%; Sitharaman cited recent economic figures.
- Where
- The 5th Kautilya Economic Conclave in New Delhi.
- When
- Saturday; Sitharaman cited data for the first quarter of FY2026-27 and August.
- Why
- Panagariya pointed to stable inflation, continued economic activity, and manufacturing growth as evidence of resilience.
Key facts
- Medium-term growth forecast
- 7–8% annually, according to Panagariya
- Manufacturing growth
- More than 10% in each of the past three financial years
- Real GDP growth
- 7.8% in the first quarter of FY2026-27, according to Sitharaman
- Consumer price inflation
- About 4.8% in August
- Current account deficit
- 0.5% of GDP during the quarter
- Event
- 5th Kautilya Economic Conclave 2026
Quotes
Arvind Panagariya
16th Finance Commission Chairman
“I have long believed that the Indian economy will continue to grow at 7-8 per cent. When tensions in the Middle East escalated, I initially felt the impact on India could be quite severe, but the economy has performed remarkably well.”
thehansindia.com
“Uncertainties may affect one or two sectors, but they do not necessarily impact the entire economy. Some sectors continue to perform well and provide support to overall growth.”
thehansindia.com
Sources
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