India will clock over 8% growth from FY21: NITI
India will achieve a GDP growth of 8 per cent plus from fiscal year 2020-2021 onwards as the structural reform measures like the GST are set to yield the intended benefits, NITI Aayog Vice Chairman Rajiv Kumar has said.
New York: India will achieve a GDP growth of 8 per cent plus from fiscal year 2020-2021 onwards as the structural reform measures like the GST are set to yield the intended benefits, NITI Aayog Vice Chairman Rajiv Kumar has said.
The eminent economist was in the city for the High-Level Political Forum Ministerial Meeting on Sustainable Development Goals at the United Nations Headquarters.
During the visit, he delivered the keynote address at the 'India Investment Seminar' held at the Consulate General of India, New York.
Kumar stressed that in the next five years, the Modi government will focus on accelerating growth from the current about 7 per cent to more than 8 per cent that will propel the country to easily achieving the target of becoming a 5 trillion dollar economy.
"I personally think that in the fiscal year 2020-2021 onwards, we will achieve higher than 8 per cent growth, (continuing) then for the next many years. It is just a fact of (growth) taking off," Kumar said.
"The foundation has been laid and the transformation has begun with the passing of structural reforms like the Goods and Services Tax, Insolvency and Bankruptcy Code.
These have taken their time to settle down and now they'll produce the benefits," Kumar said. "We have the potential to grow at double digit growth rates," he said.
On the issue of job creation, Kumar emphasised that a very large number of jobs have been generated in the country in the last five years.
"If it was always a jobless growth, then that would have shown up in social strife and social tensions and surely would have meant that this government would not have been re-elected," he said, adding that the re-election of Prime Minister Narendra Modi-led government shows that there is a level of satisfaction with the government's performance.
He, however, acknowledged that the nature and quality of jobs is not meeting the aspirations of the country's young people and they want better quality jobs that will engage them fully.
"That has to be ensured by us improving the investment climate for domestic investors as well as foreign direct investors."
Kumar highlighted that the Union Budget, presented earlier this month, has taken big steps forward for facilitating and further improving ease of doing business by liberalising the inflows of the FDI.
"This budget is a paradigm shift in saying that we will achieve accelerated growth and job generation but with the primacy of private investment.
That is what our focus is - that will then generate the jobs." Underscoring the potential in the agriculture sector, which has 43 per cent of the workforce, Kumar said investment in the agro-processing sectors and improvement in agricultural yields will help exponentially in job creation.