India’s growth needs ratepayers, says Finance Secretary

New Delhi

India’s economic growth must be driven not just by taxpayers and borrowings but also by ratepayers, said newly-appointed Finance Secretary Ajay Seth on Saturday. Speaking at an event in the national capital, Seth emphasized that ratepayers—those who pay for daily utilities like water, electricity, and public transport—must play a more active role in financing the country’s growth.

“The savings pool in this country is limited. We generate income and either deploy or invest it. But who's going to finance the growth… only three sets—taxpayers, the next generation (borrowings), or ratepayers. So far, only taxpayers or the next generation have been financing growth,” Seth stated.

He highlighted that the role of ratepayers has been muted, stressing the need for all three groups to contribute. “Ratepayers have to play a prominent role,” he added.

Seth also underlined the importance of exports as one of India’s four engines of growth, alongside agriculture, MSMEs, manufacturing, and investments—highlighted in the Union Budget by Finance Minister Nirmala Sitharaman.

Addressing the global economic scenario, Seth pointed out that the world is facing a tough geopolitical environment. “Economic difficulties in other countries are being accentuated by their geopolitical stances. I don’t see these uncertainties subsiding in the medium term,” he noted.

He also referenced shifts in global economic strategies, mentioning the U.S.’s move towards economic reorientation.

Ajay Seth, a 1987-batch IAS officer from Karnataka, was recently appointed Finance Secretary and holds additional charge as Revenue Secretary.