Mumbai: The ambition of Indians should be for the country to grow, Amitabh Kant, CEO of NITI Aayog said on Friday.
“India is growing at 7.6% per annum; we’re an oasis of growth in the midst of a barren economic landscape across the world. But we should be growing at 9 to 10% per annum. It is imperative that we create wealth,” Mr. Kant said during the Yashwantrao Chavan Memorial Lecture 2017 on the topic ‘Vision of NITI Aayog for transforming India’. The event was jointly hosted by the Indian Institute of Public Administration (Maharashtra Regional Branch) and Yashwantrao Chavan Pratishthan.
“There is an enormous difference between a 7% and 10% growth rate,” Mr.Kant said. “Currently, our per capita income is $1,052. If we have a growth rate of 7%, by 2032, our per capita income will be $4,600. And if we grow at 10%, our per capita income will be in the region of $7,000, and there will be no poverty in India.” he claimed. “A growth rate of over 10.5% can double our GDP every seven years.”
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Mr.Kant also shed light on the competition between States that has been set up within the past year. “Not only do we rank them [the States] with respect to each other, but we also name and shame them. Now we’ve even started ranking cities on the basis of cleanliness.”
On the question of global integration of the Indian economy, he said, “Despite being in an age of Mr. Donald Trump and Brexit, India must continue to believe in globalisation. World trade has grown and poverty has decreased due to global trade.”
Asked about how India’s isolation from the China-led ‘One Belt, One Road’ project would impact this goal of global integration, Mr.Kant responded, “We have a negative Balance of Trade with China. We should continue to pursue a bilateral relationship with them. We should facilitate Chinese manufacturing units in India. Goods can be made in India and invested by China.”
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Looking at technology as a key feature in both, growth and employment, he said, “India has a combination of technology, innovation, and great skills, and we must use these to do frugal engineering. We need to sustain this strength and push is across Tier-II and Tier-III cities.”
The role of technology doesn’t stop there, according to Mr.Kant. “India needs a second Green Revolution to increase agricultural productivity, and also take people from agriculture into manufacturing, which is also getting digitised … It’s impossible to create jobs without the manufacturing sector. We can’t live with premature de-industrialisation.”
Job growth, however, is suffering from a seven-year low in eight sectors of the economy, and the NSDC reported the Pradhan Mantri Kaushal Vikas Yojna to have a placement rate of 5%. When asked to comment on the same, Mr. Kant responded, “There are major flaws in the labour bureau statistics. A Commission has been appointed under the Chairmanship of Dr.[Arvind] Panagria [Vice Chairman, NITI Aayog] to look into the same. We’ve to push for labour intensive growth in some [that is, the aforementioned] areas. Also, the IT layoffs are due to a reskilling process. The media is over-sensationalising it. These employees have not lost competency. Companies are just getting value additions.”