NITI Aayog Vice Chairman Arvind Panagariya today said the government has put the economy on the path of reform to achieve a high growth trajectory though there are significant lags between policy decisions and outcomes which need to be addressed.
He said challenges such as restoration of the health of banks and accelerated growth in the manufacturing sector as envisaged by the Centre's Make in India programme to achieve job growth continue to remain.
However, he said the direction of progress is right.
Delivering a lecture on 'The Economy at Two Years under Prime Minister Narendra Modi' at University of Rajasthan, Panagariya defended the creation of NITI Aayog in place of Planning Commission and said the role of planning too is poised for a change.
NITI Aayog is now working on a 15-year vision plan complemented by a seven-year strategy and a three-year short-run macro framework plan, he said.
Panagariya said the UPA I government had expanded social schemes but not taken necessary measures to sustain the high growth over a longer period of time.
He claimed that the "policy paralysis" during the UPA II rule had hurt the economy badly and as a result, it descended into what appeared to be a crisis during the last two years of its rule.
"Today, the economy is far healthier compared to the last year of UPA II in all macroeconomic parameters," he said, adding that the current government ended the paralysis by clearing numerous projects.
Vice Chancellor of the university JP Singhal was present on the occasion among others.