In an exclusive interview with ET Now, Niti Aayog CEO Amitabh Kant talks about the stock of the economy and where is it headed from here on. Kant states that science suggests that the pace of recovery is increasing and that too rapidly. The index of industrial production, which has been in contraction for six months, has turned positive in the month of September.

Amitabh Kant further states that he is extremely confident that we are on the path to sustain recovery. The reforms that the government has introduced were long demanded. He also mentions that clear signs of economy reviving are visible. A boost in both the economy and employment is likely to happen soon.

Kant credits the faster than expected economic recovery to reform measures announced by the Central Government in the areas of agriculture, labour and more recently with the announcements of production linked incentives in the manufacturing sector. These measures however will make a tangible impact on the economy over the next few years once the implementation rolls out.   

While the reforms have been well received, the various tranches of fiscal stimulus have fallen below most expectations with more support demanded for vulnerable sections of the economy like the tourism or aviation sector. “Even if support is given to the travel and tourism sector at this moment, it will not yield results”, says Kant explaining that the process of fiscal stimulus is not done yet. “All the ammunition cannot be fired at this particular moment”, he says.