137th Day Of Lockdown

Maharashtra49026232728117092 Tamil Nadu2850242275754690 Andhra Pradesh2069601204641842 Karnataka164924842322998 Delhi1427231282324082 Uttar Pradesh113378668341981 West Bengal89666630601954 Bihar7179446294400 Gujarat68855517922604 Assam5549737225132 Rajasthan4941835186763 Odisha4255028698292 Haryana4005433444467 Madhya Pradesh3729827621962 Kerala3170019147103 Jammu and Kashmir2392716218449 Punjab2193014040539 Jharkhand165427503154 Chhatisgarh11408831987 Uttarakhand89015731112 Goa7947559570 Telangana751354330615 Tripura6014408437 Puducherry5123291475 Manipur3466192610 Himachal Pradesh3206200813 Nagaland26578247 Arunachal Pradesh204913263 Chandigarh137482023 Meghalaya10234236 Sikkim8544061 Mizoram5672890
Business Economy 12 Sep 2019 Former PM Manmohan S ...

Former PM Manmohan Singh suggests five steps to tackle slowdown

DECCAN CHRONICLE | Edited by : SAMEER DESHPANDE
Published Sep 12, 2019, 4:42 pm IST
Updated Dec 15, 2019, 4:30 pm IST
The first step is to accept that the economy is in crisis, said Congress party leader Manmohan Singh.
The government must listen with open mind to all stakeholders and experts, Former prime minister Manmohan Singh said adding that he does not perceive any targeted approach by the Narendra Modi-led Bharatiya Janata Party (BJP) government on this subject. (Photo: File | ANI)
 The government must listen with open mind to all stakeholders and experts, Former prime minister Manmohan Singh said adding that he does not perceive any targeted approach by the Narendra Modi-led Bharatiya Janata Party (BJP) government on this subject. (Photo: File | ANI)

Mumbai: Five corrective steps can reverse the economic slowdown, which is cyclic as well as structural primarily because of the demonetisation of higher value currency notes and implementation issues with the Goods and Services Tax, economist and former Prime Minister Manmohan Singh said in an interview to a daily newspaper.

The first step prior to implementing the five steps is to accept that the economy is in crisis, he said in an interview in Hindi with Dainik Bhaskar.

 

The government must listen with open mind to all stakeholders and experts, he said adding that he does not perceive any targeted approach by the Narendra Modi-led Bharatiya Janata Party (BJP) government on this subject.

“The Modi government should come out of the habit of news headline management. Already a lot of time is wasted. Instead of making sectoral announcements, efforts should be made now to simultaneously take forward the entire economy framework,” he said proposing five steps to put the economy on path of high growth.

 

Firstly, even though this would mean a revenue loss for a brief time, GST should be made ‘logical’. Secondly, formulate new ways to revive rural consumption and strengthen agriculture. “The Congress’s election manifesto mentions ‘concrete alternatives’, wherein money could reach in the hands of people by freeing agricultural markets,” he said.

Thirdly, for capital formation there is a need to promote liquidity in the system. Fourth step is to revitalise key labour-intensive sectors such as textile, automobile, electronics and affordable housing. For that easy loans would be needed, especially for micro, small and medium enterprises (MSMEs), he said.

 

His fifth step depends on export opportunities emerging due to the ongoing United States-China trade war. “We must recognise new exports opportunities emerging because of America-China trade war. Remember, solutions to both cyclic and structural problems are must. Then only, we can get back to the high growth rate in 3-4 years,” he said.

 

He said the government cannot live in denial while expressing his opinion on the current state of the Indian economy. “India is in extremely serious economic slowdown. The growth rate of 5 per cent in the last quarter is lowest in the six years. Nominal GDP growth is also at a 15 year low. Many key sectors of the economy have been affected,” he said.

 

The automobile sector is in trouble because of a steep reduction in output. More than 3.5 lakh jobs have been lost. This pain is visible at auto hubs in Manesar, Pimpri-Chinchwad and Chennai. Ancillary industries are also affected. The slowdown in truck manufacturing is more worrying, which is a clear indicator of tepid demand of goods and essential commodities. The all encompassing slowdown has also gripped the services sector, he said.

The real estate sector is not able to perform well for quite some time, which is affecting related industries such as bricks, steel and electricals. Core sector has slowed after a fall in coal, crude oil and natural gas sectors. The rural economy is depressed because of non-remunerative prices of crops. The unemployment was 45 years high in 2017-18. Consumption, which is the reliable engine of economic growth, is 18 months low. A decline in sales of Rs 5 biscuit packet has told the whole story, Singh said.

 

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT