Niti Aayog Vice-Chairman Rajiv Kumar on Saturday said the government will hit the ground running in addressing the factors to ease doing of business for private sector, which he said is crucial to stem the declining trend in economic growth.
Kumar, who was last week named Vice-Chairman of the policy think tank of the government for a second term, said the government is likely to unveil a policy in the forthcoming parliament session to ease the restrictive labour laws. “However, India will not have a hire and fire policy,” he said.
“You will see action on labour policy in coming parliament session,” he said in an event in New Delhi.
Kumar said access to capital in the country is free while land is an issue on which states need to do a lot to build trust with industry.
He said the upcoming five years would set the foundation for India achieving the position of the second biggest economy by 2047 and insisted that private investment has to lead the way for the next phase of growth.
Sharing insights on the Indian economy and his vision for the next phase of growth, Kumar said the government is open to ideas and will ensure more ease of doing business to facilitate higher private sector investment, which has been unfortunately on the decline for the past few years.
He said the Indian economy has to grow at 7.5 to 8 per cent over next decade. “The last five years has been the only period when the country has grown at above 7 per cent with macro stability,” he added.
“The ratio of FDI to GDP is declining, which needs to change. We need to suitably define portfolio, brownfield, greenfield to ensure more FDI flow,” Kumar said.
Commenting on the slowing growth impulse of the economy, he said the government would make use of the available fiscal space in Budget to reverse the declining trend in the economy. “The aim should be to ensure at least 7.5 per cent growth over next five years,” he said.
The Prime Minister reconstituted NITI Aayog last week with Kumar as Vice-chairman, and VK Saraswat, Ramesh Chand and VK Paul as members.
Kumar said GenNext entrepreneurs will be a major driver of the next phase of Indias economic growth.
He said the focus on the government is on inclusive growth and India has already pulled out 30 crore individuals out of poverty.
“Equitable sharing of the benefit of economic growth has been the biggest achievement of the Modi government,” he said, adding that it has the capability to ensure the benefit of development reach the targetted people in whole, and not in piecemeal.
Talking about the landmark Ayushman Bharat scheme, Kumar said some 3.80 crore cards have been distributed already and some 37 lakh individuals have benefitted in past seven months.
He said the scheme is currently available in both public and private sector hospitals, though big hospitals have bee out of its ambit currently because of pricing issues.
“We are working with big hospitals to bring them within its ambit,” he said.
He said Niti Aayog is working on ranking hospitals and training manpower in healthcare care through short-term courses, which will help improve the entire infrastructure.
Kumar said development has to become a mass movement in the country. “The effort has been to remove the dualism that existed in our society,” he said.
He said education cannot entirely be privatised. There is a need to improve public sector-run education system.
He insisted on third-party evaluation of public sector education and merger of schools to improve the public education system.
On the other hand, private sector-led growth has to ensure that it creates opportunities for people across the spectrum. There is a need to build trust among various stakeholders, industry, government, bureaucracy and beneficiaries, he added.
“Our focus is to achieve a much larger formal economy,”Read More – Source