NITI Aayog Vice Chairman Rajiv Kumar has voiced confidence that India will achieve economic growth of 8 per cent plus from fiscal year 2020-21 onwards as structural reforms like the GST are set to produce the benefits.
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 his visit, he delivered the keynote address at the 'India Investment Seminar' held at the Consulate General of India, New York. Mr Kumar stressed that in the next five, the Narendra Modi government is focussed on accelerating growth from the current about seven per cent to more than eight per cent that will propel the country to easily achieving the target of becoming a five 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," Mr 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," he said.
"We have the potential to grow at double digit growth rates," he said. On the issue of job creation, Mr Kumar emphasised that a very large number of jobs have been generated in the country in the last five years.
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."
Mr 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 FDI.
Underscoring the potential in the agriculture sector, which has 43 per cent of the workforce, Mr Kumar said investment in the agro-processing sectors and improvement in agricultural yields will help exponentially in job creation.
Mr Kumar said that inclusionary aspects of social programmes such as Ayushman Bharat, JAM trinity of Jan Dhan bank account, Aadhaar unique identity number and mobile phone, have been put in place.
He also pointed out that efforts are also being made to promote private investment in the mine, mineral and coal sectors because otherwise the country's import dependence is increasing both for oil and gas as well as for coal even though there are huge reserves in the country. He noted that the SDG principle of "Leaving No One Behind" finds resonance with the Government of India's motto of "Sabka Saath Sabka Vikas [Collective Efforts Inclusive Growth]", which guides all development initiatives.
Mr Kumar acknowledged that while a lot has been achieved through programmes such as Swachh Bharat Mission and Ayushman Bharat, challenges remain in a country of 1.3 billion people - from a water crisis, shortage of energy in parts of the country, pollution and need to increase female participant rates.