Government committed to nurturing private sector, says NITI Aayog’s Rajiv Kumar

Amid pessimism over the GDP growth slipping to six-year low in June quarter, NITI Aayog Vice Chairman Rajiv Kumar, on Friday, said that the government is committed to nurturing the private sector and achieving 8 per cent growth annually is doable.

The growth in economy had slipped to a low of 5 per cent in April-June, 2019-20, the lowest in last 25 quarters.

Kumar also lauded the government’s decision to cut the corporate tax rate, and exuded confidence that investors will take advantage of the measures announced by Finance Minister Nirmala Sitharaman.

“The Finance Minister’s announcement that those who invest between October 1, 2019 to March 31, 2020, their tax rate will only be 17 per cent and with the surcharges about 25.17 per cent, that’s a huge incentive,” Kumar said on the sidelines of an event organised by Public Affairs Forum of India (PAFI). He hoped the investors will take advantage of these measures and those who have been waiting on the fence will now jump to make investments.

“I think this is a historical day and it shows the commitment of this government to promote and nurture private sector and that it believes that private enterprises will take the industry forward which will take the economy forward. Industry is of the view that double digit growth is not only achievable but necessary. So, 8 per cent growth is easy (to achieve),” he added.

To a query on Rs 1.45 lakh crore revenue impact of Sitharaman’s announcements, Kumar, an economist himself, exuded confidence that the government will maintain the fiscal discipline and make sure there are no slippages.