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AIMA Diamond Jubilee National Management Convention

Growth slide has bottomed out: NITI Aayog

‘Next two quarters will see higher growth’

27 September 2017 : New Delhi

Release of Special First Day Cover and Postage Stamp to commemorate “AIMA’s Diamond Jubilee Year”. (L-R) Rekha Sethi, Director General, All India Management Association; Sudhir Jalan, Co-Chairman, Diamond Jubilee NMC and Chairman, Neo Foods Pvt Ltd; Babul Supriyo, Minister of State for Heavy Industries and Public Enterprises Government of India; Sunil Kant Munjal, President, AIMA and Chairman, The Hero Enterprise; Amitabh Kant, CEO, NITI Aayog, Government of India; T V Mohandas Pai, Senior Vice President, AIMA and Chairman, Manipal Global Education Services and Sujit Kumar Chowdhury, Postmaster General Delhi Circle, New Delhi

The declining economic growth rate of the last six quarter has got over and the next two quarter will see higher growth rates, Rajiv Kumar, Vice Chairman, NITI Aayog told the National Management Convention of All India Management Association today. “The downside has bottomed out in July and GDP growth is rising again,” he said. Kumar was speaking on the convention theme ‘Folding the Future In: Reimaging India’.

Kumar conceded that demonetization and GST have impacted growth but he argued that it is a necessary pain in the course of formalization of the economy.

Responding to the feedback that GST was starving exporters of working capital and the demonetization had debilitated the MSMEs, Kumar said that the NITI Ayog will do whatever it can to facilitate the transition to a formal economy but India could not accept economic activities that were below the radar. He pointed out that the Mudra scheme was supposed to take care of the MSMEs issues by providing loans without collateral but it had the risk of NPAs.

Babul Supriyo, Minister of State of Heavy Industries & Public Enterprises told the convention that the Prime Minister had the courage to take unpopular decisions to achieve change in the country and he asked the industry to show patience and solidarity with the government. He said that many CPSEs had been sustained in the past just for votes despite relying on the exchequer to pay salaries and such CPSEs are being shut down. “Many of the CPSEs are 70-80 years old and they are losing money hugely because Chinese products are 50-60% cheaper,” he said.

NITI Aayog CEO, Amitabh Kant said that the use of technology will allow India to leapfrog. He pointed out that India was the only country with a billion biometric identities, a billion bank accounts and a billion mobile phones and that would allow India to disrupt western financial models. “India will make ATMs, credit cards and debit cards redundant in 3-4 years,” he said.

Kant stressed the need for predictability and consistence of policies in order to keep growing at 9%-10% over the next three decades. He also argued that women’s participation in the workforce would be critical to such growth and India must raise women’s contribution to GDP from 24% to the global average of about 48%.

Sunil Kant Munjal, President, All India Management Association, said that India must handle the technological shift well to grow, otherwise the country will lose jobs. He said that folding the future in will decide global leadership in the new era. “It is not only important to be competitive now but also to get to the future first,” he said.

TV Mohandas Pai, Senior Vice President, All India Management Association, called for Indian models of innovation and growth. He pointed out that China and ASEAN grew rapidly at a time when the world was opening up whereas India is trying to grow at a time when the world is shutting up.

About All India Management Association (AIMA)

The All India Management Association (AIMA) is the national apex body of the management profession in India. AIMA is a non-lobbying organisation, working closely with Industry, Government, Academia and students to further the cause of the management profession in India. AIMA makes a constructive contribution to management learning and practice in the country by offering various services in the areas of testing, distance education, research, publications and management development programmes.

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Ranjana Bhardwaj