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Niti Aayog’s economic agenda for new government

  • Niti Aayog is working on the economic agenda for the new government for achieving long-term sustainable growth and boosting private investments.
  • The economic agenda might also pitch for extending labour subsidies to textile and leather sectors to reduce cost of production.
  • Cost of capital in India is quite high, which needs to be brought down.
  • The NITI Aayog is a policy think tank of the Government of India, established with the aim to achieve Sustainable Development Goals and to enhance cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom-up approach.

S & P: Reform leading to improvement in foreign capital flows

  • Modi’s decisive victory in 2019 Lok Sabha elections will result in continuity and stability in the governments’ reforms policy, leading to improvement in foreign capital flows for corporate in India.
  • India’s bankruptcy code, simplification of the country’s tax regime, and privatisation of inefficient state-owned enterprises are all likely to create opportunities for private enterprises going forward.