NEW DELHI: The focus of the second term of the Narendra Modi government is accelerated economic growth led by the private sector and private enterprise, according to NITI Aayog Vice Chairman Rajiv Kumar who asserted that India will be at the "cusp of a major transformation" over the next five years.
In a keynote address at the 'India Investment Seminar' held at the Consulate General of India, Kumar acknowledged that the government is "conscious" of the fact that since 2011 private investment has "pretty much turned turtle", the Public-Private Partnership (PPP) models didn't work, report agencies.A large number of those PPP ventures converted themselves into Non-Performing Assets (NPAs), the risks were too much for the private sector to take, the risks associated with projects, land acquisition became too high and the investment to GDP ratio has declined.
"The intention and the sharp focus of the Modi government is very clear and it is that private enterprise must be given the space, the incentives to play its role in the economy. The government has no intention at all to try and be the main driver of growth in the country because it is not possible," Kumar said Wednesday.
He emphasised that the focus of the second term of the Modi government is accelerated economic growth, beyond the 7 per cent the country has achieved to an eight per cent plus growth that is led by the private sector and private enterprise.
"The next five years, India is going to be at the cusp of a major transformation and if we succeed, as this government is wanting to, you will see a decade plus more of sustained high growth which will be undertaken with inclusion but also with sustainability," Kumar said.
Kumar stressed there is "clear recognition" that some of the reform measures that have been undertaken, including demonetisation, has helped formalise the economy to a much larger extent than what it was before.