Speculations are always to be cheer about because either they reward you or punish you and you learn in either of the situations. The same is now with the Indian economy or more appropriately, the world economy.
The BJP came to power with a huge mandate in 2019. The Government of India has also implemented various schemes for the micro economy such as Ujjwala Yojana, housing for all, medical benefits up to 5 lakhs and other numerous schemes have been taken for the financial Inclusion.
As we dream of a 5 trillion economy, have we confined ourselves to the micro economy only or is it essential to focus on the macro as well?
India wants to become the top third Economy in the world. To attain this, we have to implement some major serious reforms.
The consolidation of banks, removing the liquidity crisis from NBFC, special allowances for the auto sector may seem to be promising but in reality, this is not enough to alleviate the present situation.
Long term unbiased goals need to be engineered to boost the present going-down Economy. Creating demand is a major and toughest task to get rid of the situation.
Demand can also be developed following the implementation of some crucial decisions.
- Abolishing the Income-tax and replacing it with the consumption-based income tax.
- Banks need to raise the deposit rate to 9%(that is what we stuck on 5-6%).
- Increasing the Prime lending rate to 10%.
Power sector demands a serious focus. Govt. should craft some new industry favoring rules. The same is the situation of real estate as well. Real estate always remained an unorganized sector in India. To boost the economy, the government should move the focus towards the real estate sector too.
Some measures have also been implemented to tackle the situation of a drowning economy, but not enough. India needs to evaluate the macrostructure and implement some better policies, if not the best, sooner to alleviate the ignored sectors.