Government Committed To Achieving 8% Growth Doable: NITI Aayog
A vendor sells footwear and door mats at Fancy Bazaar in Guwahati, Assam, India. (Photographer: Dhiraj Singh/Bloomberg)

Government Committed To Achieving 8% Growth Doable: NITI Aayog

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

The growth in economy had slipped to a low of 5 percent 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 Oct. 1, 2019 to March 31, 2020, their tax rate will only be 17 percent and with the surcharges about 25.17 percent, that's a huge incentive," Kumar said on the sidelines of an event organised by Public Affairs Forum of India.

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 percent 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.

Also read: Growth Gain Versus Fiscal Pain: The Economic Impact Of Corporate Tax Rate Cuts

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