29/06/2015 11:18 PM IST | Updated 15/07/2016 8:25 AM IST

India's GDP Will Grow To 8 Percent In This Financial Year; Hit $3 Trillion Mark In 5 Years: Panagariya

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NEW DELHI, INDIA MARCH 07: Arvind Panagariya during the India Today Conclave 2014 in New Delhi.(Photo by Pankaj Nangia/India Today Group/Getty Images)

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

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

Indian economy, which is little more than USD 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.

Read: India Cannot Move Forward Without Land Acquisition Amendment: Panagariya

"...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," Panagariya said.

"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."

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

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