New Delhi, Jan 1 (KNN) The Central government named Arvind Panagariya, former Niti Aayog vice-chairman, as the head of the 16th Finance Commission, on Sunday.

Having served in the role of Niti Aayog Vice-Chairman from January 2015 to August 2017, Panagariya, a distinguished economist, presently imparts his expertise in economics at Columbia University.

In August 2017, Panagariya's unexpected departure from Niti Aayog prompted speculations about his relationship with the Centre.

Prime Minister Narendra Modi, however, lauded Panagariya's contributions, recognising his instrumental role in shaping the new body that succeeded the Planning Commission.

Expressing gratitude, PM Modi stated, "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," during an address at a CEOs' function organised by Niti Aayog.

Panagariya has been a vocal supporter of the Modi government's significant reforms, emphasising the necessity for labor reforms and reduced protectionism to unlock India's potential for growth.

Earlier this year, Panagariya projected that India could secure the position of the world's third-largest economy by 2026. Citing an annual average growth rate of 10.22 per cent in current dollars over the past two decades, he predicted India's GDP to reach USD 5 trillion in 2026 and USD 5.5 trillion in 2027, potentially outpacing existing forecasts for the nation's economic standing.

(KNN Bureau)