Dr. Rajiv Kumar took charge as NITI Ayog Vice Chairman on Friday. After taking charge he spoke on a number of issues and outlined his vision. He said the Indian economy will grow at a better growth rate in the coming few quarters.
Taking charge at the helm of govt’s main think tank new vice chairman of the NITI Aayog spelt out his priority and said that country is on a high growth trajectory.
He said that there is a need to develop Bharatiya Development Model to suit indian development goals. He elaborated his priorities and said creating more jobs, agircultural tranformation, health, education will be in focus.
He expressed confidence that economic growth in the second quarter of this fiscal is expected to soar to on the back of good monsoon and clarity over GST. “I am confident that in the July-September quarter.economy will grow by 7-7.5 per cent. Destocking, which was in anticipation of GST rollout has completed and now, there is more clarity on the new tax regime.”
Kumar said that just released GDP numbers are a blip. He added that it will be wrong to link demonetisation with the slow down in growth numbers.
The government has already expressed satisfaction and said that the aims of demonetization have been met. Data released by the RBI indicates that 99 per cent of the currency in the market returned to the banking system. Such a huge cache of cash coming into the system and taxing it will net the govt huge amounts of revenue apart from unearthing black money. A direct impact of demonetisation has also been a widening of the tax base and an increase in Direct tax collection.
The Finance Minister said there’s no doubt that demonetisation has had a reformative impact, more people have been compelled to become tax complaint.
Economist Rajiv Kumar replaced Arvind Panagariya, an economist who left the think tank to return to academia. Kumar was a senior fellow at the Centre for Policy Research (CPR).
Earlier, he had also served as Secretary General of industry association FICCI.
National Institution for Transforming India or NITI ayog is govt’s main think tank and replaced the Planning Commission which followed the top-down model. The emphasis of NITI is on bottom-up approach and make the country to move towards cooperative federalism.
The Aayog recently released “Three-year action agenda” which said that India has good prospects of achieving over 8 per cent growth within 2-3 years. It proposes linking central government expenditure to future priorities, shifting additional allocations to high-priority sectors which are more likely to promote development.