For Arvind Panagariya, the first Vice-Chairman of NITI Aayog, policy-making, rather than planning, will be his top priority. In his first interaction with officers of the erstwhile Planning Commission, he spoke at length on the need to push through labour reforms and strengthen the SME (small and medium enterprise) segment — the backbone of manufacturing — to take India up several notches in the competition ladder.

On Tuesday, his first day at the NITI (National Institution for Transforming India) Aayog, Panagariya engaged with his senior officers for almost an hour. 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.
In his interaction, Panagariya spoke about the unprecedented growth that India witnessed, pointing out that the sharp deterioration was largely of its own making and could not be attributed to external factors. Policy paralysis and mismanagement led to poor growth rates of 5 per cent and lower, he said.

“Clearly, he wants to remould NITI into a policy hub. He spearheaded labour reforms in Rajasthan, and its demonstrative effect is already visible. Maharashtra followed suit, and other states including Madhya Pradesh and Punjab are getting their act together to give the SME segment the flexibility in hiring labour to spur growth,” said an official.

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