Key requirement for govt is disinvestment, says Amitabh Kant

Privatisation, disinvestment and GDP were the key words for Amitabh Kant. The CEO of Niti Aayog, who was the keynote speaker at a function celebrating the 99th Foundation Day of the New India Assurance company, stated in his address that the key requirement for the government was disinvestment.

"It's not the government's business to do business, so we are focusing on disinvestment. The Air India disinvestment plan is now in its final stage and is with Finance Minister Arun Jaitley. There are many more disinvestment plans for other PSUs which I can't reveal at the moment."Asked about the economy and how India could continue to maintain its GDP growth, Kant said, "There are several factors we must work upon to achieve the desired level of GDP growth within the range of 9-10 per cent for the future. Ease of doing business is a given and to do that the 'Make in India' campaign needs to be integrated into the global supply chain," he said.

He added that the role of technology, especially digital transactions, is needed if India is to be seen as an economic powerhouse."

But this aside, Kant said that some states in the country needed to step up their GDP growth if India was to maintain its 9 to 10 per cent GDP growth for the future. "It's very clear. Nine to 10 of the big states in the country will have to grow their GDP by at least 11-12 per cent. This they will have to do for quite some time if the country's GDP is to grow at 9-10 percent annually."

Asked as to what steps the government was taking to boost FDI in manufacturing sector, Kant replied that contrary to perceptions, India's manufacturing sector was doing just fine.       

"It's wrong to say that foreign investment is coming in the service sector only. In fact, 40% of FDI is coming in manufacturing. And with initiatives like 'Make In India', FDI in manufacturing is only going to increase. What I am looking at is the insurance sector. To boost infrastructure projects we need more FDI in the insurance sector as there is lots of potential in the Indian insurance sector."