Rajiv Kumar takes charge as NITI Aayog Vice-Chairman

Source: The Hitavada      Date: 02 Sep 2017 08:10:00


Sept 1,


RAJIV Kumar, who took over as Vice-Chairman of NITI Aayog on Friday, rejected criticism that demonetisation was responsible for the fall in Gross Domestic Product growth and said it cannot be blamed for that. “Demonetisation should not be seen as the reason for the fall in GDP. There was a six-week period when cash deficit existed and from January (2017) things were fine,” he told reporters after taking charge of the office.

Kumar was appointed Vice-Chairman in place of Arvind Panagariya, who opted to return to teaching in Columbia University in the US. He said destocking by firms was the reason for the GDP fall.  “Huge discounts were given and productivity also came down. A deflationary effect was negative after a long time. In every economy whenever there is a fundamental governance reform, such a situation is witnessed.”