India needs to revive animal spirits in private sector and credit flow – Amitabh Kant

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New Delhi: Mr Amitabh Kant, CEO, NITI Aayog, today said that the key challenge is to focus very strongly on reviving the animal spirits of the private sector and revival of the credit flow in Indian economy.

Speaking at the ‘FICCI National Executive Committee Meeting’, Mr Kant said, “The budget will put India on the right track, and backed by the structural reforms, it will accelerate the pace of growth of India’s economy to higher levels of growth trajectory.”

He added that government will continue the structural reforms outside the budget as well.

Mr Kant said that the private sector should become part of the asset monetization plan of the government. “We have finalized the RFP for 150 private trains and in the coming 45 days, they will be put out in the market and will be very attractive bids. We will also have close to 10 railway stations where private sector will play an important role. Soon the government plans for 6 airports for bids in a month or two,” he added.

Mr Kant, while addressing the FICCI members said that the key to the budget is successful implementation of disinvestment. “Through this budget, the government has cleared its intentions both in asset monetization as well as public sector disinvestment. Asset monetization plans of the government are important for the private sector,” he added.

Mr Kant further added that India is a difficult place for greenfield investments but is an attractive destination for brownfield investments where projects are already been constructed and there are low risks.

“Government will put out huge brownfield assets for the private sector to invest across various sectors and on the back of private investments, the credit flow should come in into these sectors,” said Mr Kant.

CEO, NITI Aayog also said that India needs a major set of structural reforms across agriculture by bringing in technology, mining sector, coal sector and railways sectors. “It is not possible for India to grow without the private sector and if anyone expects the govt to accelerate the pace of growth then it is not possible. India can’t grow on the back of government sector.”

Highlighting the credit flow concern, Mr Kant said that it is very important that lending by public sector banks grows at a rapid pace with the series of measures taken. “The ultimate objective is to have lowest corporate tax and personal income tax regimes in India,” Mr Kant said.

Dr Sangita Reddy, President, FICCI, said that the country’s aspiration to become a USD 5 trillion economy depends critically on promoting ‘pro-business’ policies. “To make it simpler for the business, it would require innovative approaches that are based on trust, transparency and effective enforcement by using data and technologies,” said Dr Reddy.

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