India Navigates Global Turbulence, Keeps Growth Steady, Says 16th Finance Commission Chair

New Delhi, October 3 – Arvind Panagariya, chair of the 16th Finance Commission, told IANS that India has managed the current wave of global instability far better than many peers. He said the country’s inflation has remained stable while the overall pace of economic activity has not faltered. Despite heightened tensions in the Middle East, the Indian economy has shown resilience, continuing to expand at a rate of around 7‑8 percent.

Panagariya emphasized that the manufacturing sector is now the main driver of this momentum, posting growth of more than 10 percent over the last three fiscal years – the highest figure recorded since independence. He added that businesses often set aside provisions for specific uncertainties, which tend to affect individual sectors rather than the whole economy, allowing other segments to perform well and support overall growth.