Clearing bank non-performing assets (NPAs) is essential to boost growth, said NITI Aayog vice chairman Arvind Panagariya . In an emailed response to questions, he told Yogima Seth Sharma that the slowdown in China could throw up some export opportunities for India. Edited excerpts:Over-valuation is difficult to define since it must be measured relative to some notion of an equilibrium or optimal exchange rate, which is difficult to define. But the rupee has surely appreciated against the euro and yen recently in both nominal and real terms.Basic theory suggests that this must have had an adverse effect on our exports to Europe and Japan . The appreciation has been largely the result of the weakening of the euro and yen against the dollar, the reasons for which are to be found in weaknesses in the European and Japanese economies rather than active foreign exchange interventions aimed at devaluation.The RBI ( Reserve Bank of India ) can surely not take its eyes off inflation. But as I have said that within the agreed range of 2 to 6% target range of inflation, there may now be scope for further cut in the interest rate and that the RBI will likely take the necessary action at the appropriate time.I have written for some time now that the clearing of bank NPAs is an essential reform necessary to accelerate growth further. I also believe in the use of multiplicity of instruments to tackle complex reforms rather than rely on a single measure. So I would not rule out any instruments at this stage including a bad bank.Generally, slowdown of a large economy contributes to the slowdown of the global economy , which is not a good thing for an economy such as India. That being said, in so far as the slowdown of China may lead to some vacating by it of export markets in products in which we could emerge as the alternative, it could work to our advantage.If you take full stock of what the present government has done in its first year, you will see that the present government has done in its first year more to advance the cause of reforms than the previous government did in all its 10 years put together. Its record in the first year is arguably also superior to that of any other previous government.The finance minister did make some compromise by extending the consolidation plan from two to three years. This was just about the right compromise since a large compromise would have also sent a negative signal to the markets about the willingness of the government to live within its means.I have said that India indeed can. For us the critical step is to wrest some of the share of the vast export market from China and other competing countries. Remember that the OECD countries have grown no more than 1.5% per year during 1991-2013 when China managed to register a near-double-digit average rate.India is well positioned to weather the headwinds that might arise out an eventual rise in the interest rates. Our foreign exchange reserves at nearly $355 billion place us in a good position to deal with any situations arising out of the event.There is big risk that the land and GST bills may not get passed in parliament. Would these be a big setback for the economy?I won’t be pessimistic. Pundits had said in the past that the mining and coal legislations could not be passed but the government successfully carried them to their logical conclusion. So let us wait and see.I have maintained that the fallout from the Greece crisis for India is negligible, if that. If the question here is whether the crisis is over for Greece and Europe, I’d say we have to wait and watch. Greece still remains very far from economic recovery.