"It's all about how India continues to be one bright spot in the global economy" : Interview with Parameswaran Iyer, CEO, Niti Aayog, at Davos

A: I think that is something which the government will have to decide. But the fact is that we are open for business with given the fact that we have maintained a growth of 6.8-7 percent, the last quarter, they were predicting 7 percent. So, jobs have increased. So, in the face of all these global headwinds, recently, the Prime Minister had an interaction with economists in the Niti Aayog, a couple of days ago, and I think there was acknowledgement all around, obviously, that, India has somehow managed to remain resilient. And I think we are very optimistic about growth. If you look at exports as well, despite import bill going up, partly due to the oil bill as well. But we are very ambitious, and the commerce minister is talking about a 2 trillion export target by 2030. So, things are in place, the PLI is a huge trigger to bring in world class manufacturing, value added and make it home and also export.

A: Exactly. The food security program which we put in place, particularly during COVID, that made a huge difference. At one point, there was more than a crore hot meal being served during that program, I think we have got a very strong social security net in India. And that encouraged people to go out and spend and consume, unlike other countries where they don't have such a strong social security net, so they are saving much more, whereas here, consumption is increasing. But on the social security aspect, in addition to the food part, now that we have got the National Food Security Act, which is increasing the number of food grains for people are eligible for, I think going forward, that's one part which will always be important, because we need growth with inclusion. But if you look at the number of social programs which the country has run over the last eight years whether it's toilets for women, whether it's housing, whether it's roads, bank accounts, jan dhan, 40 million bank accounts. So, I think what is really important here is that this program of basic services at scale, that's something which in the first 6-7 years of this government, whether it's rural or urban, there is a sense of security that no one is left behind. And I think building on that, together with growth, growth with inclusion, is something which the Prime Minister is talking about and in the end the plan is in 25 years to become a developed country in 2047. So, the building blocks have been set in place and now it's a matter of getting down to further implementation and getting the states on board – that is a very important agenda, particularly for Niti, an instrument for enhancing government effectiveness, Government of India, and the states. So, every state has got a critical role to play in that USD 5 trillion or USD 10 trillion target. And I think building the capacity and working together with states is going to be very, very important to get them all on the same sort of national page.

A: The Prime Minister's speech of August 15, 2022, he made a very important point, he said, India grows when the states grow, and in the spirit of competitive collaborative federalism. So that is a very, very important mandate for Niti. And so, we have started something called the state support mission, where we work with all states, and we work with them to help them develop their own GDP target, and inclusive GDP target, what is the roadmap for that and what is that institution which will drive that in the state. So, we have already had 4-5 states which have created their own state Niti; UP has done it, Karnataka has done it, Assam has done it, Maharashtra has done it. So, we are working with them, but then we need to build the capacity helped them to build the capacity of that institution to have the right skills, which again, comes back to Skill India, and how do you develop the skills and how do you share that knowledge across states, that's important because you don't need to reinvent the wheel. And every state will have its own strategy. In fact, every district, the Prime Minister is talking about one district, one product. So, every district will have its own unique development trajectory, every state will have its own. So, we are working with states, and we are helping them to help the districts as well.

A: I think the Prime Minister's global standing is making a huge difference whether it's Ukraine or whether it's the whole geopolitical situation, I think that personal standing makes a huge difference. He has the ability to influence and convene. So that itself is making a difference. But India's role has been increasingly recognized globally whether it's in partnership with the West and we play a role of situational thing, the Prime Minister comes in whether it's the Ukraine, this is not a time for war. So, I think that he carries a lot of weight globally. But in the G20 Presidency, there are four or five very important themes which India will sort of try to stress. The first is obviously climate, climate, environment and life, lifestyle for the environment, something the Prime Minister announced at COP26 in Glasgow. How can sustainable lifestyles helped to improve climate and then of course we have got the energy transition, going to be critical and of course, climate financing is going to be on the table, particularly from the developed countries. What are they putting on the table after all the commitments made in Paris. And then we have got women led development, the whole reform of the multinational institutions accelerating the SDGs and critically digital economy and data for development. I mean, India's digital story is phenomenal. As you know, 40 percent UPI, almost 5,000 crore transactions last year. So, the whole digital story, India stack - this is something, but India can help the world. I was looking at some numbers recently, there are apparently 4 billion people in the world without any digital identity. There are 2 billion people without bank accounts and 130 countries don't do digital transactions. So, there are huge lessons of India for the world whether it's SDG progress, or whether it's digital story to the world. So, India can play a major role in convening, but also in helping other countries.

A: When the Prime Minister and the Secretary General of the UN, they jointly launched this life globally, on October 20, in Kevadiya in India. The Secretary General was visiting India then. It's the other side of the climate debate, if you want to think of it like that. On the one side, you have got the science, the policy, and the NDCs and here, you have got a bottom up approach, how can people contribute to climate, I mean, there is evidence from the UNEP (United Nations Environment Programme) that people's actions can actually reduce emissions by almost 20 percent. So, they can make a big difference. For the Prime Minister, who is leading this as a global movement, it’s about how individuals and communities can contribute to the climate and environment and there are three aspects to it. One is if you nudge people into adopting climate friendly behaviour whether it's water conservation or riding bicycles instead of using big SUVs, simple things like that using cloth instead of plastic, the Prime Minister's focus on simple actions sort of walking the talk that can nudge demand. So, industry in turn, and corporates can respond to that. If people demand climate friendly products, they will have to respond. So, then the supply comes in and finally the policy angle. So, there are three aspects to it, which are being rolled out. Individually, India, our traditions, our culture has always been climate friendly. So that is going on and that is being rolled out, but globally as well, if you remember, there were 10 heads of state who endorsed the Prime Minister's live movement at Kevadiya. So now life has been rolled out globally as well. And June 5 World Environment Day, we plan to have a large international conference where action research will be rewarded.

A: Actually, not at all. We continue with all our cutting-edge work because first and foremost, we are a national thinktank, innovation, disruption whether it is on electric mobility or energy or the PLI scheme or asset monetisation, which are trying to take - that focus continues.

A: Last year, against the target of 80,000, we did 90,000 crore and this year it is moving along. The finance minister has taken a couple of meetings and we are hoping to have a sort of more progress as the year rolls out. So that focus on disruption, innovation, technology, digital, everything, which Niti has always done - that continues, but there is also a focus on the states. I think that is quite important. Not so much social; social, of course, is important, but agriculture, health education. We have got Vinod Paul with us who has been leading the whole COVID campaign as well. But I think the whole idea is to take some of the asset monetisation and move it down to the states as well because they need to raise resources. The whole focus on public private partnerships is very much there. We have a very strong team in Niti. So, nothing has changed.

A: There is a lot of demand coming from the industry. Again, this is something which we need to work out with the Department of Heavy Industries and, of course, the finance ministry. So that discussion will go on, and we will see how that plays out.

A: Many things obviously, continued push on the agricultural front, the PLI is obviously continuing. I am sure there will be a focus on growth. Again, fiscal consolidation, I think that is quite important keeping the budget deficit, trying to bring it down to that level and obviously, jobs are very important; MSMEs, needless to say, all these were are discussed at the chief secretary's conference in some detail, where the overarching theme was Viksit Bharat (Developed India Mission), reaching the last mile. So, growth with inclusion. And let us see what happens in the budget.

A: It was very positive. It was a very frank discussion. It went on for about 90 minutes and the Prime Minister summed it up brilliantly. You had a lot of divergent views, but his ability to…

A: Not divergence; it went all the way from how do you deal with other countries, all the way to the goods and services tax, reforms in general, jobs, MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act 2005) – there were a lot of discussion, but the ability of the Prime Minister to pull it all together and summarize it in a few succinct sort of sentences – that was amazing.

For more details, watch the accompanying video