Former PM Manmohan Singh had warned in November 2019 that the Indian economy was entering a stage of stagflation, with high inflation and stagnant demand.
National Statistical Office predicts growth to be 1.8 percentage points lower than the actual 2018-19 mark of 6.8%, led by a fall in investment and consumption.
GST, jobs & unorganised sector formed the focus of a roadmap put forth by economy experts, including from Congress & Left, to ease India’s economic situation.
Policies must be made after much debate, by experts with feet on the ground. Politicians need to take responsibility and inform businesses early about changes.
It would be a pity if Modi govt keeps ignoring bad economic news. Danger of doing nothing is that growth of 6% or less becomes the norm, not the unacceptable.
Taking a swipe at BJP MP Pragya Thakur's recent remarks, Congress spokesperson Randeep Surjewala said GDP meant 'Godse Divisive Politics' for the ruling party.
While the commission didn’t mention provisions under which IndiGo's market domination would be examined, Competition Act 2002 prohibits abuse of dominant position by any enterprise.
It is argued that India-Israel ties are moving from buyer–seller dynamic to one focused on joint development & manufacturing partnership, a shift 'more durable' than traditional arms sales.
Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.
Fundamentally budget is about revenue and expenditure how and how much government exp cute to earn…….over how and how much it plans to spend.
Apply the layer of “economic and social need” over this exercise and it becomes a macro economic tool.
If Modi governments track record is anything to go by budget it will tinker around the edges for sentimental effects and keep structural changes out of budget exercise.
Congress made budget a voter gift-distribution event for political reasons. So people will expect out of habit
As detoxification wears off and economy recover to 7-8% growth rate……there is nothing much this budget can or should do except maintain the course.
The article raises a very pertinent observation but fizzles out over the details. While everyone does focus on immediate issues concerning the budget relating mostly to tax reduction and income transfer/support for the poor, various structural reforms are talked more in general terms than specific ones and are finally left out to be formalized by the policy makers. What we need is to dismantle the economic administration and management structure inherited from Nehru Indira days and make India a truly ‘minimum government, maximum governance’ country, where government will take care of the poor but will allow private players full freedom to grow but will extend required support for it. Specific objectives with which government can work could be say, achieving zero trade deficit with China in next 3 years, getting out of all PSBs and PSUs in next 5 years, abolition of all subsidies and merging them into DBT etc.etc.
It is for the PM to announce this as his economic vision for the country, use his political capital to hard sell it and then leave his government to implement it. Sooner he does it, the better it is for the country. .
Fundamentally budget is about revenue and expenditure how and how much government exp cute to earn…….over how and how much it plans to spend.
Apply the layer of “economic and social need” over this exercise and it becomes a macro economic tool.
If Modi governments track record is anything to go by budget it will tinker around the edges for sentimental effects and keep structural changes out of budget exercise.
Congress made budget a voter gift-distribution event for political reasons. So people will expect out of habit
As detoxification wears off and economy recover to 7-8% growth rate……there is nothing much this budget can or should do except maintain the course.
Nice article! I hope GoI does breakaway from the normal routine and lay out the plans for economic reforms needed for next 20 years.
The article raises a very pertinent observation but fizzles out over the details. While everyone does focus on immediate issues concerning the budget relating mostly to tax reduction and income transfer/support for the poor, various structural reforms are talked more in general terms than specific ones and are finally left out to be formalized by the policy makers. What we need is to dismantle the economic administration and management structure inherited from Nehru Indira days and make India a truly ‘minimum government, maximum governance’ country, where government will take care of the poor but will allow private players full freedom to grow but will extend required support for it. Specific objectives with which government can work could be say, achieving zero trade deficit with China in next 3 years, getting out of all PSBs and PSUs in next 5 years, abolition of all subsidies and merging them into DBT etc.etc.
It is for the PM to announce this as his economic vision for the country, use his political capital to hard sell it and then leave his government to implement it. Sooner he does it, the better it is for the country. .