GDP to grow 8% in FY16; hit $3 trillion mark in 5 years, says Arvind Panagariya

India's growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass $3 trillion mark in less than five years, said NITI Aayog Vice Chairman Arvind Panagariya on Monday.

"I will be greatly disappointed if we do not hit the 8 per cent mark in 2015-16. I expect the economy to hit $3 trillion within five years or less," he told PTI in an interview.

Indian economy, which is little more than $2 trillion, recorded a growth rate of 7.3 per cent in 2014-15. India is presently the third largest economy in Asia after China and Japan.

On the back of ongoing reforms and stress on manufacturing sector as part of the 'Make in India' drive, the NITI Aayog chief said that India can look for much bigger share in global exports, the global economic woes notwithstanding. ...the world economy is large and our share in the world exports is still below 2 per cent.

"So we have a huge scope for growth even in a sluggish world economy. As long as we continue on the reforms path and ensure that the rupee does not become unduly overvalued, we will be well positioned to chip away some of the 12 per cent share that China currently enjoys in the world merchandise exports."

Wages in China have already risen enough that many manufacturers there are looking for new destinations with lower wages and India is well placed to be that destination, Panagariya said.

On global developments impacting India, he said the fragility of the global economy itself is greatly overstated.