Prime Minister Narendra Modi campaigning for the Gujarat Assembly elections. (Photograph: PTI)

All Macroeconomic Parameters Have Improved In Last Four Years: NITI Aayog

NITI Aayog Vice Chairman Rajiv Kumar termed Narendra Modi government’s performance as ‘miraculous’, saying all the macroeconomic parameters, including growth, inflation and fiscal deficit, have shown a considerable improvement in the last four years.

“The government has done well on all fronts considering that the country plunged into a state of policy paralysis and was on a standstill mode during the closing years of the UPA regime,” Kumar said today.

Modi took over as the 15th Prime Minister of India four years ago on May 26, 2014.

In 2014, the economy was on a decline, non-performing assets of banks had risen already. Plus, there was a complete policy paralysis, the government was on standstill. With that kind of legacy, it is quite miraculous that we have come to where we are at this moment in terms of macroeconomics.
Rajiv Kumar, vice chairman, NITI Aayog

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He said inflation is down now, foreign exchange reserves are high, fiscal deficit is in control and growth has accelerated. This government has also made growth hugely inclusive, he said. “In terms of the macroeconomic conditions, we have achieved what would have been very difficult for anybody to achieve,” he said.

Kumar also admitted that some areas of concern still remain. “For example, NPAs of banks are still high, the current account deficit has not improved much, but it is still better than 2014.”

Oil prices, which had given us comfort, have increased, which means that we will have to look at macroeconomics all over again to make sure that we can sustain and maintain the growth rate, which I think we will be able to do,” he said.

Kumar emphasised on the need to look at corporate governance in the banking sector to improve investment flows. He expressed hope that headline inflation won’t go up and core inflation will remain subdued.

Replying to a query on the farm sector, he pitched for involvement of private traders in procuring crops from farmers. “I think that would be fiscally much more prudent and doable option, if we can implement it well,” Kumar said.

Also read: The Economy Under Modi: Gains, Self-Inflicted Pains, And A Dash Of Luck