States must take labour market reforms ahead: 16th Finance Commission head

Arvind Panagariya, chairman of the 16th Finance Commission (PTI file photo) Arvind Panagariya, chairman of the 16th Finance Commission, spoke to TOI after submitting the panel’s report. He speaks on a range of issues from growth prospects for the economy to reforms that need to be pushed. Excerpts:How do you see India’s growth prospects in the short to medium term? Growth prospects in the short to medium term remain excellent. For reasons difficult to understand, forecasts for India consistently underestimate growth. Govt has shown impressive progress in infrastructure build-up, ended the exemption raj in personal income taxation, instituted a two-rate…