Indian economy, which was growing at the fastest pace just a couple of years ago, has been on halt for quite some time now. According to the official data from the government, the economy grew 5.8% during the first quarter of 2019, which was way slower than China’s 6.4%. The country’s economy remained stagnant throughout the year. This was really worrying not only for Indian policymakers but also for Indian and global market pundits, since India had been showing the potentiality of being a big economic power ever since the 1991 liberalization.
Although India’s economy is in the midst of its worst financial crisis in the last 42 years, many experts still believe the country will catch the road to a fast economic growth by the end of 2020. However, the government needs to take this issue with utter sincerity and put its weight behind the economy before it takes a disastrous form. Since Finance Minister Nirmala Sitharaman is set to present the Budget 2020 on February 1, a lot is expected by industry leaders.
It has been observed in the last few months that local citizens have got impacted by the current circumstances, despite inflation in check. This is why the first and foremost thing the government should do is taking local consumers in confidence, introducing policies that put money into their pockets. Talking to industry leaders and taking their inputs into consideration while framing the budget might be a good idea, for they are not only the money-makers but also job creators.
Privatization is another fine tool that many believe to be a catalyst of growth. Many state-owned companies have lost value and have become a burden on the country’s economy. Privatization raises ample resources, in addition to giving the government substantial space for social infrastructure. A business should be with entrepreneurs, not with the state, as shown by various developed nations in the modern era. And all these steps should be at the earliest, before realizing it’s too late to recover.