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NITI Aayog can lead transformation of Indian economy: Vice Chairman Kumar


[India], May 24 (ANI): of the for Transforming (NITI) Aayog said on Friday that the new must think afresh on ways to create new jobs, modernise agriculture and increase exports.

"The next five years can be a sterling period where Aayog is right at the centre of a transformational process of Indian economy. The most important part of the economic agenda is to encourage private investments," he told ANI.

Kumar said the cost of capital in is extraordinarily high. "Our real cost of capital is more than 6 per cent. In China, it is less than 2 per cent."

The full Budget for the current financial year to be unveiled after the formation of the new should focus on reviving private investment and improve credit availability, he said.

Lending by housing companies has come down by 20 per cent. This is a cause of concern and needs to be addressed in the Budget, said Kumar. He also urged to reflate consumption demand as many sectors like FMCG, consumer durables and automobiles are facing headwinds.

At the same time, the public sector must withdraw from sectors where the private sector can step in. "There is no reason for public sector to be running hotels and other things that we do. A revival of public-private partnerships is required. We need to share the risks with private sector."

Modernisation of agriculture and doubling the farmers' income is also imperative, said Kumar. "We have to ramp up investments in and make the agriculture sector more efficient."

It may be recalled that on March 29, had tweeted: "If voted to power, we will scrap the Aayog. It has served no purpose other than making marketing presentations for the PM & fudging data. We will replace it with a lean whose members will be renowned economists and experts with less than 100 staff.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 24 2019. 19:11 IST