Dinesh Kamath's Editorial 'Policies to boost Indian Economy needed' that was published in Newsband

Policies to boost Indian Economy needed

India is the world’s fastest-growing major economy. Implementation of the Goods and Services Tax is indeed doing a lot of good to the economy of the country. The steps taken to address the twin balance sheet problem in the banking sector have resulted in debt resolution and the initiative to recapitalise public sector banks.

There has been a global recovery in the form of overseas demand for India’s goods and services. Indian stock indices continues to soar to new highs on an almost daily basis.  

The Centre needs to reappraise its priorities. There is need to establish and maintain policy credibility. The government may have to retain the elbow room to stabilise the GST, complete the recapitalisation exercise and, most crucially, support agriculture.

The dangers climate change poses to the outlook for farm growth should not be ignored. It has potential to reduce annual agricultural incomes.

A range of mitigation measures is required. Job creation and education are key priorities, Rapid economic expansion can be achieved by focusing on private investment and exports.

Reforms are most important for sustained high growth on which the government seems to drag its feet. Archaic labour laws are a great impediment in foreign and domestic investment. To its credit the government has initiated a number of financial reforms which will facilitate investment and economic growth. Creation of jobs and agriculture distress are major challenges for the government.

The Economic Survey Report tabled in the Parliament presents a mix of optimism and despair. The projected growth next year is7-7.5%.

The farmers, the marginalised and the like know that they have to survive the current year to reach the promise of the year next. They are quite sure that these tantalizing figures would never transform into tangibility.

Working class is the bulwark of production. Neglecting working class will not help the economy because of reduced purchasing power in home market. Purchasing power of people should be improved.