In this way, the government can attract substantial investments that go to China, Arvind Panagariya also said.

Even as major reforms including GST and IBC have already been announced, the Modi government should now focus on coastal employment zones, former NITI Aayog vice-chairman Arvind Panagariya told CNBC TV-18 in an interview. India can replicate the Chinese model of coastal special economic zones (SEZs) as seen in places such as Shenzhen, the noted economist also said. In this way, the government can attract substantial investments that go to China, the professor of economics at Columbia University also said. Such zones promote flexible land and labour laws, along with an easier movement of goods in and out of the country. It can also help in easier custom clearances, he noted.

India has grown impressively in the last 20 years, he also said, adding that more reforms can help the economy to sustain this for another two to three decades. “I think we will be very much like the South Korea, Taiwan, and China stories,” Arvind Panagariya added.

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Meanwhile, a couple of days back, Arvind Panagariya had told CNBC TV-18 that after the government announced the decision to pull out of RCEP (Regional Comprehensive Economic Partnership), India should look to get back into the group. “I remain firm in my belief that ultimately we have to join this group as there is a lot for us to gain from it,” Arvind Panagariya said. The decision could be a very big catalyst to attract a lot of multinationals to its shores because it then gives them access to markets in India as well as in China. Notably, the 15 member countries in the RCEP include Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, Cambodia, Japan, South Korea, Australia and New Zealand.