India's economic growth needs to fuelled by ratepayers: Finance Secretary

New Delhi, March 29: Newly-appointed Finance Secretary Ajay Seth said on Saturday that India's economic growth needs to fuelled by ratepayers, not just taxpayers and borrowings.

Ratepayers refer to those who use basic daily utilities and services such as water, electricity and public transport such as buses and metros.

Addressing an event in the national capital, Seth said that of the three sets that fund India's savings pools, ratepayers need to step up.

“The savings pool in this country is limited. We generate income and we 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 next generation have been financing growth," Seth told the gathering.

"The role of ratepayers has been muted, all three sets have to deliver and ratepayers have to play a prominent role," he added.

Speaking at the Skoch Group event, the Finance Secretary said that exports is one of India's four engines of growth.

In the Union Budget, Finance Minister Nirmala Sitharaman had picked four engines of growth -- agriculture, MSME and manufacturing, investments and exports.

The top bureaucrat also stated that we're in the midst of a tough global geopolitical and economic environment.

"Economic difficulties faced by other countries is getting accentuated in their geopolitical stance. Going forward, I don't see the uncertainties subsiding in the medium term. Nations seem to be moving from cooperation to competition," he said.

According to Seth, even the United States, the world’s largest economy, is moving towards reorientation of economy itself as a realisation that something needs to be done differently going ahead.

Seth, a 1987 batch IAS officer of the Karnataka cadre, was designated as the new Finance Secretary last week. Earlier this month, Seth was given the additional charge of Revenue Secretary.