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NITI Aayog Vision Document
Why is it in the news ?
- The policy think tank NITI Aayog has suggested several economic reforms in its vision document with an aim to accelerate growth.
- It aims to boost the size of India’s economy to $4 trillion in the next five years.
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Highlights of the Vision Document ‘Strategy for New India @75:
1. Growth:
- A growth rate of 9% by 2022 is essential to generate enough jobs and achieve universal prosperity,
- Towards this the document recommends a number of steps, including increasing the investment rate, reforming agriculture, and codifying labour laws.
- These reforms are suggested with an aim to accelerate growth and boost the size of India’s economy to $4 trillion in the next five years.
2. Tax-GDP Ratio :
- India should aim to increase its tax-GDP ratio to at least 22% of GDP by 2022-23.
- India’s tax-GDP ratio of around 17% is half the average of OECD countries (35%) and is low even when compared to other emerging economies like Brazil (34%), South Africa (27%) and China (22%).
- It said there is need ease the tax compliance burden and eliminate direct interface between taxpayers and tax officials using technology.
3. Infrastructure:
- Freight transported by coastal shipping and inland waterways will be doubled by 2022-23.
- Initially, viability gap funding will be provided until the infrastructure is fully developed.
- An IT-enabled platform would be developed for integrating different modes of transport and promoting multi-modal and digitised mobility.
- By the end of 2019 all 2.5 lakh gram panchayats will be digitally connected, in order to enhance rural connectivity and access to government programmes.
4. Investment:
- NITI Aayog has suggested that the investment rate be boosted from 29% of GDP in FY18 to 36% by FY23.
- Doubling goods and services exports to $800 billion by FY23 from $478 billion in FY18, improving the business environment and working with states to relax land and labour rules.
Source
The Hindu, LiveMint.