The NITI Aayog, widely seen as a think tank and a successor to the Planning Commission of the pre-Modi era, is apparently neither a think tank nor a successor!
At a press conference to talk about the four years of NITI Aayog and its work, Vice Chairman Rajiv Kumar said it was in fact “a thought leader” and not a think tank, if at all an “action tank”. The eminent economist, who succeeded Arvind Panagariya to become the second vice chairman of NITI Aayog, said the new body was not a successor to the Planning Commission as it had long become dysfunctional. “It was a thought leader under Gadgil, which the NITI Aayog is”, said Kumar.
The National Institution For Transforming India (NITI) Aayog was put in place soon after Prime Minister Narendra Modi disbanded the Planning Commission, a Nehruvian remnant. Instead of dealing with devolution of funds to the states, as the Planning Commission did, the NITI Aayog had no say over the finances but was mandated to come up with innovative ideas for development and handhold the states through the implementation process, among other things. “We collect the best ideas from all over the world, for the development of India,” said the vice-chairman, adding that the NITI Aayog would become an agent of change with the power of ideas and the power of implementing ideas in the states.
Kumar dared anyone show a block of four years with the kind of “formalising, cleaning up, reforms, simplicity of taxes, the kind of reforms in the form of GST, IBC, RERA, the Benami Act”, as the last four years have witnessed. “The kind of focus which the government has is remarkable, and not tempered by politics”, he said, adding that India is at the cusp of a major economic recovery, and would soon shift to the 8 per cent plus GDP growth rate. He asserted that, despite the state of the economy which this government had inherited, he is optimistic that from now on there is no looking back for India.
He described the debate on jobless growth in the last four years as “a lie”. “The debate has been based on anecdotal stuff and piecemeal data, and it can't go on,” he said, adding that there is a lack of good data on employment. He said now they have household survey which comprises of employment data as well as payroll-based data which will include those working for companies like Uber, Ola, Flipkart and Amazon.
Among the main achievements which the NITI Aayog CEO Amitabh Kant referred to in his power point presentation, was the idea of implementing the government's commitment to double farmers' income and competitive federalism.
He said the NITI Aayog would soon release historical indices and real time data-based ranking of states, measuring incremental annual outcomes in critical social sectors including health, education, water and Sustainable Development Goals. This, he said, was to nudge the states into a competitive environment for better outcomes and sharing best practices and innovations. One among the indices that are being developed is called “School Education Quality Index”
Responding to questions on divestment, Kumar said the disinvestment target suggested by NITI Aayog will be fulfilled by the government. A total of 34 CPSEs were recommended for disinvestment, and the list was approved by the Cabinet Committee on Economic Affairs. While admitting there was a “new active and deep consideration in the civil aviation ministry on Air India”, he said the government was committed to turn it around and run it well in the future.
On fixing the Minimum Support Price (MSP) at 150 per cent of input cost for the kharif crops, NITI Aayog Member, Ramesh Chand said that it was a historical decision to the implement the scheme for 24 crops. Kumar also said it would not have an impact on core inflation, which does not include food and fuel prices, “which in any case is much higher than the headline inflation which includes food and fuel prices”, thus suggesting that it may not lead to a higher inflation.
About the falling value of rupee, Kumar said “there was no question of getting worried, nervous or interfering with the rupee-dollar rate”. He also expressed confidence over the LIC's plan to bail out IDBI Bank. “LIC will make very good money from the bank, and will turn it around, by which the bank will also make very good money”.
Vinod Kumar Paul, member, NITI Aayog said the National Medical Commission Bill had been based on “intensely debated views of a sub-committee” and the Parliament would take the final decision. He said that the rates under Aayushman Bharat had been well thought out, and are in line with the market rates. “It is an honest effort, and the price is fair. There can be no profiteering in this”, he added.
Replying to a question on Prime Minister Modi's campaign for “One nation, one election”, Kumar said, personally, he favoured the idea because the nation constantly staying on poll-mode may affect the credibility of elections.
Though demonetisation was not successful in creating a cashless economy, NITI Aayog CEO held on to the idea that there has been a tremendous growth in digital payments. “It will see a huge growth in the next few months, but it has to grow much more. We will give it a big push in the smart cities and aspirational districts”. When pointed out that people were using debit and credit cards, Kant said that these were outdated. “They are dead and gone. Use BHIM and if you must use a card, use Rupay card,” he said, pushing the ideas that the NITI Aayog helped design, to transform India.