NITI Aayog sees 8% plus growth from FY 2020-21

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 — Rajiv Kumar, vice-chairman, niti aayog

New York, July 22

India will achieve a GDP growth of 8% 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 is focused on accelerating growth from the current about 7% to more than 8% that will propel the country to easily achieving the target of becoming a 5 trillion dollar economy.

"I personally think in the fiscal year 2020-2021 onwards, we will achieve higher than 8% growth, (continuing) then for the next many years. It is just a fact of (growth) taking off," Kumar said in an exclusive interview.

"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 past 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 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.