The Centre on Sunday appointed Arvind Panagariya, former Niti Aayog vice-chairman, as head of the 16th Finance Commission. Panagariya, who served as Niti Aayog V-C from January 2015 to August 2017, is a renowned economist and currently teaches economics at Columbia University.
In August 2017, the economist announced his surprise exit from the Niti Aayog after a two-year stint. While speculations began over his equations with the Centre, Prime Minister Narendra Modi praised Panagariya, saying he had quietly done marvels in shaping the new body that replaced the Planning Commission.
"I want to especially thank Niti Aayog Vice-Chairman Arvind Panagariya, who is showing how work is done in mission mode... He has done good work and the country will always remember him and his contribution," PM Modi said while addressing a function of CEOs organised by the Niti Aayog.
Panagariya has hailed the Modi government's major reforms while asserting that the country needs labour reform and less protectionism to achieve its potential growth.
Earlier this year, the economist said India could become the third-largest economy by 2026. During the past two decades, he said, India has grown at an annual average rate of 10.22 per cent in current dollars.
"At this rate, India’s GDP in current dollars will reach $5 trillion in 2026 and $5.5 trillion in 2027. This means that there are good prospects that India will become the world’s third economy by the end of 2026, sooner than nearly all current predictions."