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In an exclusive interview with NewsX, Amitabh Kant, the former CEO of Niti Aayog, shed light on the Union Budget 2025, emphasizing the government’s commitment to stimulating India’s growth trajectory. According to Kant, India aims for an ambitious growth rate of 8-9% by focusing on domestic demand, which he believes is essential given the current global economic scenario, including tariff wars and disruptions in global supply chains. He argued that driving demand through consumption is crucial as it triggers production, leading to job creation and, ultimately, growth.
Biggest Tax Relief:A Boost For The Middle Class
Kant also lauded the Finance Minister’s fiscal prudence, pointing out that the government’s major tax relief package for the middle class represents the largest such initiative in Indian history, amounting to approximately 7% of total tax collection. This is seen as a significant boost to the middle class while maintaining financial responsibility, with the fiscal deficit targeted to reduce from 4.8% to 4.4% next year.
When questioned about India’s GDP growth, which has remained stubbornly under 7%, Kant identified two key factors: the flow of credit and the removal of regulatory bottlenecks. He emphasized the need for greater credit flow, something the Reserve Bank of India will address through monetary policy. Kant also advocated for a quicker and more aggressive approach in eliminating bureaucratic red tape, referencing government efforts to streamline regulations through a new committee. The government has also outlined an ambitious infrastructure development plan, with a focus on asset monetization, which Kant believes will improve the efficiency and productivity of the government.
Asset Monetization: A Pathway To Increased Efficiency
On asset monetization, Kant pointed to last year’s success, where the government surpassed its target by monetizing assets worth ₹6 lakh crore, including airports and coal mines. This year, the government aims to increase this to ₹10 lakh crore, further accelerating the pace of privatization and public-private partnerships. Kant underscored the importance of swift implementation of these measures to unlock their full potential.
Discussing sector-specific initiatives, Kant highlighted the significant reforms in the tourism and MSME sectors. The government’s push to promote 50 cities with infrastructure status and attract private sector investment in tourism is expected to generate job opportunities, with each tourism-related job creating an additional 11 indirect jobs. The move is seen as a game-changer for the tourism industry, which can now expect to see more hotel developments and improved facilities.
Deep-Tech Fund And AI: Positioning India In The Global Race
In the realm of technology, Kant expressed strong support for the creation of a deep-tech fund aimed at fostering innovation in AI and other emerging technologies. He advocated for India to focus on building foundational layers of AI, rather than merely applications, positioning India to potentially leapfrog into a leadership role in the global AI race.
On the question of social mobility, Kant emphasized that the government’s ongoing infrastructure projects, such as providing 40 million houses, 120 million toilets, and piped water connections to millions of citizens, will significantly contribute to uplifting people out of poverty. He stated that these initiatives are transformational, creating a strong foundation for sustainable growth, and ultimately unlocking the potential of the Indian market by increasing the purchasing power of the country’s population.
Kant concluded with a sense of urgency, stressing that the government’s vision requires swift execution to meet the challenges of a rapidly changing global economy. The combination of fiscal reforms, infrastructure development, and policy changes promises to set India on a path toward sustained economic growth and prosperity.
Watch full interview here:
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