NITI Aayog’s also aims to modernise agricultural technology, increase productivity, efficiency and crop diversification
“The objective is - steadily accelerate the gross domestic product (GDP) growth rate to achieve a target of about 8 percent during 2018-23. This will raise the economy’s size in real terms from USD 2.7 trillion in 2017-18 to nearly USD 4 trillion by 2022-23,” the report said calling for growth that is inclusive, sustained, clean and formalised.
NITI Aayog today unveiled its strategy for the country as India completes 75 years of independence in 2022. It is a detailed exposition across 41 crucial areas, that recognises the progress already made, identifies binding constraints, and suggests the way forward for achieving the clearly stated objectives.
The forty-one chapters in the document have been disaggregated under four sections--drivers, infrastructure, inclusion and governance.
“Our emphasis on reforms, market reforms, allowing entrepreneurship to grow has to be accompanied with some social consciousness of the economic planners. That is why we want this model, where you allow India to grow, allow entrepreneurship, you allow the private sector to play a very important role…utilize increased resources of the states towards better infrastructure, township, healthcare facilities. Use large part of resource to use for the poor,” finance minister Arun Jaitley said releasing the report.
The document said that a slew of measures will be required to boost both private and public investment, for India to raise its rate of investment to about 36 percent of the GDP by 2022-23 from about 29 percent in 2017-18.
To enhance public investment, India should aim to increase its tax-GDP ratio to at least 22 percent of GDP by 2022-23, the report said, adding that demonetisation and the Goods and Services Tax (GST) will contribute positively to this critical effort.
Besides, the government should rationalise corporate tax and personal income tax, ease tax compliance burden and eliminate direct interface between taxpayers and tax officials using technology.
On infrastructure, the think-tank has recommended doubling the share of freight transported by coastal shipping and inland waterways, developing an IT-enabled platform for integrating different modes of transport and promoting multi-modal and digitised mobility.
It also aims to deliver all government services at the state, district, and gram panchayat level digitally by 2022-23 though Bharat Net programme.
The report has also suggested a successful implementation of Ayushman Bharat programme, including the establishment of 150,000 health and wellness centres across the country, and rolling out the Pradhan Mantri Jan Arogya Abhiyaan (PM-JAY).
DOUBLING FARMERS’ INCOME
NITI Aayog also aims to modernise agricultural technology, increase productivity, efficiency and crop diversification.
It has called for replacing the minimum support price (MSP) by a minimum reserve price (MRP), which could be the starting point for auctions at mandis.
MSP is a price at which the government buys crops from farmers, irrespective of its price. It acts as a floor price mainly during production shortages, to protect agriculture producers from sharp falls in farm prices.
Despite higher MSP on the cost of production for Kharif crops announced by the government in budget for 2018-19, farmers have not been able to gain much.
“Raising MSP or prices can only be a partial solution to the problem of assuring remunerative returns to farmers. A long-term solution lies in the creation of a competitive, stable and unified national market to enable better price discovery, and a long-term trade regime favourable to exports,” the report said.
On the recent announcements by states such as Madhya Pradesh on farm loan waivers, NITI Aayog Vice Chairman Rajiv Kumar said that while states may offer such relief measures for the cash-strapped farmers, but the NITI Aayog has not recommended a country-wide waiver.
NITI Aayog, Member Ramesh Chand also said that ‘farm loan waivers’ are not a solution as all farmers do not benefit from it.
In fact, the government must ensure that farmers get a better price for their crops, apart from looking at crop surplus management, Chand said.
Source: https://www .moneycontrol.com/news/business/economy/niti-pitches-for-labour-reforms-higher-women-participation-social-security-3308301.html
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