In an exclusive interview with India Today’s Mariya Shakil, 16th Finance Commission Chairman Arvind Panagariya analyzed India’s current economic pressures amid the West Asia crisis. Addressing a sharp 8.3% WPI surge, Panagariya urged caution, noting its weak correlation with consumer inflation. While defending Prime Minister Modi's voluntary austerity calls as a valid first-line defense, he criticized selective tariff hikes on gold, silver, and platinum findings, warning they risk fuelling informal smuggling rings. Instead, Panagariya advocated for market-driven mechanisms—allowing the rupee to depreciate and local petrol prices to rise—to effectively bridge the widening current account deficit.