Policies to boost Indian Economic growth

of 11

Please download to get full document.

View again

All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
11 pages
0 downs
1. Economix.Team No : COG12/ECO/013Names :Akhil PrabhakarArpit JainNikhil VarshneyCollege :IIT Roorkee 2. Global economies are currently on their path ofrecovery, driven…
  • 1. Economix.Team No : COG12/ECO/013Names :Akhil PrabhakarArpit JainNikhil VarshneyCollege :IIT Roorkee
  • 2. Global economies are currently on their path ofrecovery, driven by the Asian powerhouses ,from the recent financial crisis of 2008Global Economy TodayThe Euro debt crisis:-•The ongoing debt crisis has intensified concerns•The primary deficit before interest payments for Greece rose to touch€24.7bn (10.6% of GDP) in 2009.•Rising debt levels, trade imbalances, monetary policy inflexibility andloss of confidence have led to shrinkage of European economies likeGreece , Ireland , Portugal.•This has severely affected other EU members.There is an increase in loss of investor confidenceand volatility.
  • 3. Things to watch out for!
  • 4. Proposed reforms to achieve sustainable growth• Looking at the current scenario, reforms need to be made to sustain a good GDPas well as to keep our economy immune to economic turmoil around the world.• We have tried to cover some major issues as discussed below :-
  • 5. Fuelling the Domestic Consumption• Few suggested reforms in the following areas mayfuel the domestic consumption and amplify thedomestic demand.*Key point here is that to keep inflation in controlfrom increasing demand supply would be requiredto multifold so that demand-supply gap is reduced.1. Banking->Debt recovery tribunal revamp->Interest liberalization->Reforms in the Micro Financing2. Agriculture: ->Short term Credit Scheme (April-June)for farmers taking into consideration theRevenue collection period of the government->Manpower intensive Allied Agricultureneeds promotion->Direct Subsidy Transfer->Farm mechanisation, agricultural marketsand cold chains3. Infrastructure: Enhancing Foreign & PrivateInvestment
  • 6. Removing structural bottlenecks• Structural bottlenecks in Banking-Debt recovery tribunalrevamp• Assets locked up in Central Public Sector Units that haveturned economically unviable, and auction must be done• Restructuring regulatory authorities to function efficientlylike government can save the country over 75,000 Croreannually by bringing the department of fertilisers under theministry of agriculture instead of being kept under theministry of chemicals, petrochemicals and fertilisers• IT department must increase workforce to sufficeinvestigation requirementsOther reforms: Amending the definition under Sec 80-1A to include ruralinitiatives GST must be enforced through political consensus Minimum alternate tax should be reduced.
  • 7. Greater focus on increasing (IIP) Index of Industrial Production, greaterconsideration for electricity (for Driving Economic activities) and Mining (foraugmenting employment)The enormous amount of subsidies and other programs like Food security act ,MNREGA , Sarva Shiksha Abhiyan , Mid – day meal lead to huge fiscal deficit.Revising the subsidies and proper implementation of the above schemes canimprove our fiscal position.Some concerned reforms may be: Land leasing should be legalized Integration of water harvesting and its management with MNREGA Coal supply must be rationalized and fast-tracked along with distribution reforms Promoting foreign investment in infrastructure Tax deduction on in-house R&D across all industries Quality education to be stressed uponRevamping Policy Framework
  • 8. Institutional ReformsInstitutional reforms in Financial Institutions includesintegrated working of LIC, SBI & IIFCL in the following areas: Increasing debt cap against investments Housing loan schemes Allied services Asset sharing
  • 9. Regulating International Financial and Trade channels• Tackling the Black Money Retrieval and Tax Avoidance Issues• Common Tax havens MUST be identified and weaknesses inthe Indian Tax Laws must be ratified, without any delays• Trade relations with a neighboring countries mainly, Pakistan(after MFN status) and Bangladesh need to be strengthened• Expansion of Indian companies like TATA Nano toInternational Markets (Singapore) is a major event• A restoration process of releasing the monetary tighteningand providing an impetus to money inflow over a period oftime needs to be chalked out, so that the dynamicity of theIndian Economic is maintained
  • 10. Goods and Service Tax (GST)
  • 11. Our Bet for the EconomyThe Immediate Step???A major message restoring investor confidence needs to be sent byenforcing an impressive and impactful Anti-Corruption Law
  • Related Search
    We Need Your Support
    Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

    Thanks to everyone for your continued support.

    No, Thanks