'US deal could spur further liberalisation'
India's economic growth remains strong, with foreign direct investment continuing to show promising figures. Arvind Panagariya emphasizes the need for deeper trade liberalization, increased privatization, and judicial reforms. He highlights the importance of attracting long-term productive investments, especially from private equity. Trade agreements with the UK and European Union are expected to…
The US economic deal could potentially accelerate India's ongoing liberalization efforts, according to economist Arvind Panagariya. India's economic growth has been on an upward trajectory, with the 16th Finance Commission chairman outlining the need for deeper trade liberalization, increased privatization, and reforms in the judiciary and energy sectors.
Panagariya noted that gross foreign direct investment (FDI) figures have remained robust, with $93-94 billion in the latest year, and emphasized that the concern over net foreign investment declines is primarily due to private equity funds exiting. The US-India trade deal, while having geopolitical implications, could serve as a catalyst for India's liberalization by making access to its market contingent on opening its market to the US.
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