inflation: Future lies in technological disruption: Amitabh Kant, CEO Niti Aayog

India should invest in human capital and R&D to technologically leapfrog and the Niti Aayog must become the ambassador of technological disruption, the government think tank’s outgoing chief executive, Amitabh Kant, tells Yogima Seth Sharma. Edited excerpts:

What do you think are your top few achievements which have changed the economic discourse?

At Niti, I constantly strived to do innovative and cutting-edge work. We have driven initiatives across the spectrum, from driving transformative mobility to enhancing socio-economic outcomes in aspirational districts, to production-linked incentive, Atal tinkering labs in schools to sustainable development goals and from green hydrogen to circular economy. When I look back at what we have been able to deliver, a few things are very close to my heart. Firstly, the startup movement. When we launched it, there were just a hundred-odd startups and today we are the third largest ecosystem with over 70,000 startups and 101+ unicorns. Facilitating ease of doing business was another rewarding experience.

A deeply personal project for me has been the aspirational districts programme which is the largest outcome-based governance programme where we have cut through complexities and improved socio-economic indicators of the 112 most backward districts through competition, collaboration and convergence. I’ve had the opportunity to deliver on the PLI schemes, and these have really given an impetus to manufacturing, innovation and exports. The National Monetisation Pipeline has also been a game-changer.

What could be some tasks which the Aayog should take up on a priority basis?

The future lies in technological disruption and sunrise sectors of growth. Pushing evolving new technologies such as advanced cell chemistry batteries and green hydrogen would be the future. India will have to be the first country in the world to industrialise without the need to carbonise. This is not a challenge. Rather, it is a massive opportunity. Niti must become the ambassador of technological disruption in India.

India’s economy is showing a healthy rebound post Covid but how can we achieve sustainable double-digit growth over the next few years?

India needs to sustain high trajectory growth for the next three decades. Vast reforms that have been carried out will provide a major impetus. World-class infrastructure, competitive enterprises and sustainable urbanisation will be crucial to this goal. The compliance burden on businesses must be eliminated by states. Cities must be recognised as the engines of growth. States must utilise the PM Gati Shakti architecture to plan their infrastructure. Asset monetisation should be employed to raise revenues and unlock efficiencies in existing assets. We must get into futuristic areas of growth like Industry 4.0, advanced chemistry cell batteries, advanced solar tech, green hydrogen and genomics. Investments in human capital and R&D will be at the core of India’s ability to technologically leapfrog.

India is witnessing a high rate of inflation. Though the RBI is intervening, what more can be done?

We are in the midst of a global rate-hike cycle, primarily aimed at combating inflation. The RBI has taken timely action in raising interest rates, with a cumulative 90-bps hike since April. The Centre, too, has played a key role by reducing excise duties on petrol and diesel in May. Food prices account for about 45% of India’s inflation basket. Going forward, a good monsoon will see food prices moderate in the coming months. As inflation cools down globally, we should see inflation moderate in India as well.

What is your take on India’s capacity to enhance employment generation?

Production-linked incentive schemes in labour-intensive sectors have been introduced. Construction, which is a large employer, is taking off owing to investments in infrastructure through the National Infrastructure Pipeline. Real estate is also set for growth on the back of growing demand, especially in non-metro cities. The gig economy will see significant employment generation, too. As the economy grows and expands, so will employment.

Can you identify some of your unfinished work at the Aayog which needs a push to its completion?

I had set up the Behavioural Insights Unit or the Nudge Unit of India with a vision to systematically and scientifically use behaviour science to strengthen public policy in India. There are several tasks which need even greater momentum. Improving health and education outcomes, improving nutritional standards, greater partnership with states and focusing on outcomes.