TIRUPATHI : IT Tirupati had the privilege of hosting an enlightening lecture by Prof. Arvind Panagariya, Chairman of the 16th Finance Commission of India and the first Vice Chairman of NITI Aayog, on the theme “India in the Global Economy: The Next Decade.” The event witnessed the presence of distinguished guests, including Prof. Manoj Panda, Member, 16th Finance Commission of India and former Director, Institute of Economic Growth, New Delhi, and Prof. K.N. Satyanarayana, Director, IIT Tirupati. The lecture was organised by the Department of Humanities and Social Sciences, Indian Institute of Technology, Tirupati and attended by the faculty and students of IIT Tirupati.
In his welcome address, Prof. K.N. Satyanarayana shared the transformative journey of IIT Tirupati, emphasising that IIT Tirupati, a third-generation IIT, is built with a focus on cutting-edge research and innovation. With one-third of its students enrolled in Ph.D. programs and faculty actively engaged in over 200 research projects, the institute is making strides in interdisciplinary domains such as Material Science and Engineering, Smart Infrastructure, Energy Storage, Food Technology, and Precision Technology. Prof. Satyanarayana also highlighted the institute’s vision of combining a global outlook with local relevance.
Delivering the keynote address, Prof. Panagariya offered a comprehensive analysis of India's economic standing and its path to becoming a developed nation (Vikshit Bharat) by 2047. He explained that in order to transition from a middle-income economy to a high-income economy, India's gross national income (GNI) per capita would have to increase by nearly 8 times from the current USD 2,540 in 2023 (currently India is in the lower-middle-income category). Also, a sustained average annual growth rate of 7.8% over the next 24 years would be required to achieve this goal.
He elaborated on the feasibility of this goal by citing India’s growth trends in the last two decades, where India’s GDP not only grew at 8-9% but also overcame several setbacks like the Global Financial Crisis, the Covid-19 pandemic, and domestic financial challenges. He emphasised that in this period, India has demonstrated resilience and growth potential.
Prof. Panagariya outlined the three key factors supporting India’s future growth:
Transition from low per capita income to high per capita income: Significant scope exists for catching the growth, similar to China's and Korea’s past trajectories. Innovation, supported by skill acquisition and technology adoption, is essential for increasing per capita income.
Demographic Dividend: India benefits from a large, young working-age population, translating into higher savings, scalable service delivery, and increased productivity.
Infrastructure and Reform Momentum: Though reforms progress more slowly in a democratic setup, India has made steady headway in key areas such as infrastructure development. Landmark projects like the Atal Setu and the New Parliament building illustrate India’s growing capacity to execute large-scale projects. There is now a pressing need to scale up private enterprises and improve employment in high-productivity sectors, especially in manufacturing.
He addressed concerns about underemployment and the need to shift workers from low-productivity micro-enterprises to more productive firms. Stressing the importance of labour and land reforms, Prof. Panagariya called for policies that enable enterprise growth and better workforce absorption by the private sector.
In response to an engaging Q&A session, Prof. Panagariya acknowledged the lag in manufacturing growth, citing restrictive labour laws as a key bottleneck. He emphasized the need for medium-sized enterprises to scale up and highlighted industry-led skilling as crucial for enhancing workforce productivity.
On climate change, he reiterated that India alone cannot solve the global crisis. However, it can adopt dual domestic objectives—tackling pollution in cities and securing energy through non-fossil fuel sources—to ensure sustainable development while adapting to climate realities.
The lecture concluded with an optimistic note, envisioning a $9–10 trillion economy in the next decade if growth pathways are pursued with commitment and consistency.
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