Niti Aayog Vice President Rajiv Kumar said on Thursday that the country’s private sector will need to stimulate growth and not state-owned enterprises as they were before. Speaking at a webinar hosted by the Chamber of Commerce and Industry of Traders, Kumar said the private sector also needs to build trust with government, which is the need of the hour. “The country’s private sector must be the main engine of growth. Previously, the public sector was the engine of growth, but not now,” Kumar said.
Niti Aayog official said India needs to accelerate growth rates to at least eight percent to tackle the problems of reducing poverty, improving the health system and expanding the scope of education . According to him, the growth process must be fair and sustainable. Kumar said that in 1990 China’s per capita income was the same as India’s.
“Today China’s per capita income is five times that of India,” he said. To register higher growth rates, investments must be increased as a percentage of GDP and India must gain a higher share in world exports, Kumar said. And to increase the share of world exports, exchange rate policies should be changed if necessary, Niti Aayog vice president said.
In addition, the share of manufacturing industry in overall GDP must increase, he said, adding that the government has extended the production incentive program (PLI) to 13 sectors. Kumar also insisted on the need to modernize agriculture to increase productivity.