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There won't be any hire and fire policy for India: Niti V-C Rajiv Kumar

Kumar said greater focus is required in sectors like health, education, agriculture, exports and in pushing private investments

Press Trust of India  |  New Delhi 

Niti Aayog vice-chairman Rajiv Kumar
Niti Aayog vice-chairman Rajiv Kumar

Aayog Vice-Chairman Rajiv Kumar on Saturday set the record straight that while labour laws would be reformed, there won’t be any hire and fire policy for India.

Talking about labour reforms, he said, “You will see action very soon. But you have to see action not in terms of hire and fire. You have to have labour reforms where labour gets his due and rightful participation but yet investors get the flexibility to be able to change its composition of labour force. We will take action in the coming Parliament session.” He added that states have huge inventory of land which can be utilised by industry to set up units.

Speaking at a function on accelerating India’s economic growth, Kumar said greater focus is required in sectors like health, education, agriculture, exports and in pushing private investments.

“We need to reverse the decline in growth. You will see in the Budget that the government will make use of whatever fiscal space it has,” he said.

He added that the government will make sure that private investment revives, which is key to push growth and “we should clock at least 7.5 to 8 per cent growth in the next five years”.

Talking about agriculture, he said the story needs to be changed in this sector as huge opportunities exist in agro-processing, where rate of investment is very low.

“There are problems, so we will be taking steps to remove the Essential Commodities Act and may be APMC (Agriculture Produce Marketing Committee) to be replaced by APLM (Agricultural Produce and Livestock Marketing). I hope to see that. Agro-processing and exports requires huge attention from government and industry,” he said.

On exports, Kumar said India’s share in global exports is just 1.7 per cent, which is unacceptable and it should be increased significantly to push the economy. Elaborating on improving the health sector, he said so far 37 lakh people have already benefited from the government’s ambitious Ayushman Bharat programme.

When this scheme covers all 40 per cent of the population, then “you can imagine the impact of that on health and welfare of people,” he said.

He said that bigger hospitals are still out of the supplier network of this scheme and negotiations are going on to bring them in. He added that there is a need to give special focus on reducing under-nourishment as one cannot build a knowledge economy otherwise.

population is malnourished.

Further, he said focus is required on quality of basic education as it is still not accessible.

Kumar expressed hope that West Bengal Chief Minister Mamata Banerjee will attend its Governing Council meet on June 15.

The chief minister had refused to attend the meeting of Aayog to be chaired by Prime Minister Narendra Modi, saying it is "fruitless" as the body has no financial powers to support state plans.

Kumar said Aayog has the power of persuasion and it will use its two tools - competitive and cooperative federalism - to move forward.

"No financial incentive necessarily needed because that financial incentive existed in Planning Commission for four decades, (but) I do not see what they have changed... growth did not go up," he said.

When asked about unemployment, Kumar said it is linked to growth and added that informal sector has created a lot of jobs which has not been captured in the data.

First Published: Sat, June 08 2019. 23:19 IST
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