29.7 C
New Delhi
Tuesday 22 October 2019
Economy NITI agenda for new govt: Boosting pvt investment

NITI agenda for new govt: Boosting pvt investment

To increase the private investment, greater access to credit for small and medium enterprises is required: NITI vice-chairman Rajiv Kumar

-

- Advertisment -

New Delhi: NITI Aayog is working on the economic agenda for the new government where the focus will be on achieving long term sustainable growth and boosting private investments in the country, the think tank’s Vice Chairman Rajiv Kumar said on Wednesday.

Lok Sabha election results would be announced on Thursday and the new government would be in place in the coming weeks.

In an interview to PTI, Kumar said NITI Aayog would submit an action plan to the new government.

“NITI Aayog is preparing something (economic agenda) and that will be submitted to the new government. The basic thing is that we need to take steps to increase private investments in the economy. That’s a real issue and to increase the private investment, it requires greater access to credit for small and medium enterprises (SMEs),” Kumar said.

According to him, the economic agenda might also pitch for extending labour subsidies to textile and leather sectors to reduce cost of production.

Cost of capital in India is quite high, which needs to be brought down, and there is also a need to create a land bank owned by public sector undertakings so that private investment can be attracted, Kumar said.

On whether he sees a case for fiscal stimulus as the economy is slowing down, Kumar said there is always a case for fiscal stimulus provided the fiscal balance is maintained.

“So there is no case at all of busting all fiscal norms. I think, we can create fiscal space through non-tax revenues being increased.

“And also including tax compliance, there is a need for expanding public capital expenditure while maintaining fiscal balance,” the eminent economist opined.

Emphasising that India can achieve double-digit growth by 2022, Kumar said a good foundation for such a trajectory has already been laid in the last five years. During this period, there has been unprecedented macro stability as well as an average annual growth of 7% growth.

“So there is also a social basis now for ramping up our growth,” he said.

Noting that the government has done enough in last five years to be now ready to take that few steps to ramp up growth to 9%, Kumar said, “I think, that by fiscal 2022, we should be able to get there (double digit growth).”

For the current fiscal ending March 2020, Kumar expects Indian economy to record a growth of around 7%.

In February, the Central Statistics Office (CSO) revised downwards the growth estimate for 2018-19 fiscal from 7.2% to 7%, the lowest in five years.

According to a report released by the United Nations on Tuesday, India is projected to grow at 7% in 2019 and 7.1% in 2020.

Most exit polls have predicted a sweeping victory for the BJP-led National Democratic Alliance (NDA).

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions
- Advertisement -

Elsewhere

Terrorist camps reactivated along LoC; Army on vigil

Camps were built in many new places too, but they did not last long as terrorist groups have repeatedly changed their locations

Kartarpur Corridor: Pakistan ready for talks on India’s terms

India and Pakistan had earlier reached an agreement on the Kartarpur Corridor except on the condition of service charges for the pilgrims

Killers of Kamlesh Tiwari spotted; Ashfaq, Moin elusive

While the plot was hatched in Gujarat, those arrested from Surat were conspirators; police are pursuing the killers spotted in Shahjahanpur

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

The curious case of Bangladeshi beard turning saffron

While the beard underscores a Bangladeshi's Muslim identity where fashion is otherwise taboo, they are encouraged by the fact that Prophet Mohammed had set a precedent

You might also likeRELATED
Recommended to you

%d bloggers like this: