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Former Niti Aayog Vice Chairman Arvind Panagariya has said India's economy is on an 'upswing' and the government's plans for increased spending comes in the backdrop of pro-growth reforms. However, he said that it might take longer to become a $5 trillion economy due to the coronavirus pandemic-induced disruptions.

He said the country's GDP growth in October-December 2020 quarter returned to a hair's breadth above its level a year ago. He mentioned 'At 0.4 per cent, the year-on-year growth in GDP may seem low but given the large negative growth during the preceding two quarters ((-) 24.4 per cent during April-June and (-) 7.3 per cent during July-Sept, the quarter-on-quarter growth momentum is very strong'.

He stated there are signs that the government is clearing past arrears at an accelerated pace and has also provided for doubling of government expenditure in the current quarter over the same quarter last year. He pointed out ‘These facts would help boost demand and give further impetus to growth at a time when the economy is on the upswing... So the news on the growth front is very encouraging.