Labour reforms, SMEs top focus for Arvind Panagariya at NITI Aayog

Soon after taking over as the Vice-Chairman of NITI Aayog, economist Arvind Panagariya in his first interaction with senior officials has spelt out his course forward.According to a report in The Indian Express, the NITI Aayog vice chairman has said he will primarily focus on labour reforms and on SMEs (small and medium enterprises) to bolster manufacturing and sharpen the segment in the face of cut-throat competitions.

"He told them his focus would be policy, implying that he was not unduly hassled about the need to press for more budgetary support for the annual plan that the Planning Commission normally does weeks ahead of the Union Budget,"The Indian Express said.Although India has seen unprecedented growth, Panagariya also pointed out that policy paralysis and mismanagement in recent years have brought the growth rate to below 5 percent per annum. The former Columbia University professor also interacted with young professionals associated with the erstwhile Planning Commission and answered their queries.The NITI Aayog V-C also met Prime Minister Narendra Modi and Principal Secretary in the PMO Nripendra Misra.The continuance of the 12th Five Year Plan (2012-13 to 2016-17) has come under doubt following Panagariya's meetings with officials and the younger lot as there is no clarity if the ongoing Plan "would be jettisoned midway in the third year itself".On his first day, Panagariya was briefed about the Aayog by CEO Sindhushree Khullar and other senior officials.The government had announced the appointment of Vice-Chairman, two full time members, four ex-officio members (Union ministers) and three special invitees for the Aayog on 5 January.Economist Bibek Debroy and former DRDO chief VK Saraswat were appointed as full-time members by the prime minister, who is the formal head of the Aayog. Khullar would serve as CEO of NITI Aayog for a one year period effective 1 January.NITI Aayog has replaced the 65-year old Planning Commission, a vestige of the socialist era. Union Ministers Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh will be the ex-officio members while Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot would be Special Invitees.The government had notified the cabinet resolution (on 7 January) regarding the constitution of the National Institution for Transforming India (NITI) Aayog which was approved by the prime minister on 1 January.Panagariya is known for his market-friendly views and is a close associate of well-known trade economist Jagdish Bhagwati. The two have often challenged Nobel laureate Amartya Sen to an open debate on Indian economy.Panagariya has earlier been the Chief Economist of the Asian Development Bank and a Professor of Economics and Co-director, Centre for International Economics, University of Maryland at College Park.Holding a PhD degree in Economics from Princeton University, Panagariya has also worked for the World Bank, International Monetary Fund, World Trade Organisation, and the United Nations Conference on Trade and Development (UNCTAD) in various capacities.With PTI input